October 16, 2023 (MLN): Frieslandcampina Engro Foods Limited (PSX: FCEPL) saw a 10.75% YoY decline in profitability during the first nine months of the calendar year 2023.
The company's profit after tax for this period amounted to Rs1.58 billion [EPS: Rs2.06], as compared to Rs1.77bn [EPS Rs2.3] in the same period of the last year (SPLY).
Going by the results, the company's top line expanded by 39.74% YoY to Rs73.82bn as compared to Rs52.83bn in SPLY.
The cost of sales also by 43.10% YoY but was lesser than proportionate to sales increase, which improved the gross profit by 23.39% YoY to Rs11.13bn in 1QFY24.
During the review period, other income soared by 93.23% YoY to stand at Rs1.6bn in 9MCY23 as compared to Rs827.49m in SPLY.
On the expense side, the company observed an increase in Distribution and marketing expenses by 29.17% YoY and other expenses by 16.66% YoY to clock in at Rs5.63bn and Rs430.94m respectively during the review period.
The company’s finance costs surged substantially by 2.31x YoY and stood at Rs2.29bn as compared to Rs990.91m in 9MCY22, mainly due to higher interest rates.
On the tax front, the company paid a higher tax worth Rs1.45bn against the Rs1.12bn paid in the corresponding period of last year, depicting an increase of 29.48% YoY.
| Unconsolidated (un-audited) Financial Results for Quarter ended 30 September, 2023 (Rupees in '000) | |||
|---|---|---|---|
| Sep 23 | Sep 22 | % Change | |
| Sales | 73,818,555 | 52,827,498 | 39.74% |
| Cost of sales | (62,690,909) | (43,809,402) | 43.10% |
| Gross Profit | 11,127,646 | 9,018,096 | 23.39% |
| Distribution and marketing expenses | (5,633,834) | (4,361,512) | 29.17% |
| Administrative expenses | (1,345,937) | (1,240,190) | 8.53% |
| Other Income | 1,598,988 | 827,494 | 93.23% |
| Other expenses | (430,940) | (369,407) | 16.66% |
| Finance cost | (2,292,432) | (990,910) | 131.35% |
| Profit before taxation | 3,023,491 | 2,883,571 | 4.85% |
| Taxation | (1,448,086) | (1,118,406) | 29.48% |
| Net profit for the period | 1,575,405 | 1,765,165 | -10.75% |
| Basic earnings/ (loss) per share | 2.06 | 2.30 | – |
Amount in thousand except for EPS
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Posted on: 2023-10-16T15:23:31+05:00
