August 23, 2019 (MLN): AlShaheer Foods Corporation has submitted a progress report to PSX, regarding the implementation of its expansion project, specifically the Poultry and Meat Processing Plant, on a quarterly basis.
The project plan approved by the respective authorities and disseminated through the prospectus was based on a floor price of Rs. 43. However, the Company received an overwhelming response and stock floor price exceeded expectations to conclude at Rs. 95.
Keeping in view the additional proceeds received by the Company, while considering the future prospects, it was decided to expand the project to its maximum potential.
As per the details given in the report, the poultry and processed food plant in Lahore is now almost complete. In context of the significant change in the Company's external business environment after currency devaluation, the Board directed Company management to re-evaluate its immediate business strategy and maximize shareholders value.
The decision was to focus all resources and energies on current meat business, in particular exports, for the short term to fully exploit and benefit from the changing economic environment. This has delivered very positive results — the 3 quarters YTD net margin has improved to 2.9%, as compared to -0.9% of same period last year. Due to this shift in priorities for the short-term, launch of the new business category has temporarily been held. The Company is at a level of preparation where it can launch the new portfolio within four months of the Board's approval.
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