December 13, 2021 (MLN): At-Tahur Limited (PREMA) plans to increase its presence in Karachi given the high demand for some products such as the newly launched cream cheese which is a high margin product due to the population size and purchasing power of the population, the company said during its corporate briefing session on Friday.
The management stated that the company sells 5-6 tons of cream cheese in Karachi every month. PREMA informed that logistics has always remained a key challenge to expand in Karachi but with the improvement in infrastructure, the delivery time given the sensitive nature of the product has been improved, according to key takeaways by AKD Securities.
Shedding more light on its expansion plan, the management said that the company is looking to export its value-added products due to higher shelf life.
Currently, the company has a herd size of 4500+ cattle and plans to grow by importing 500 cattle per year, over the breeding ratio of 8% for milking cattle. The company mainly procures cattle breed of Holstein Friesians, from America owing to their superior genetics and higher yield, a research note by Foundation Securities said.
The company is focusing on customer needs through portfolio innovation and optimization of value chain/supply chain to ensure sustainable topline growth of 27% for FY22/23.
To recall, the company posted a net profit of Rs221mn in 1QFY22, swelling by 4.30x YoY against Rs51mn recorded in the same period last year. The increase in revenue was mainly on an account of fair value recognition of milk, fair value recognition of sell of livestock due to rupee depreciation, geographical expansion, increase in milk production along with increasing skewness towards value-added products, it added.
