Fauji Foods' losses escalate by 22.6% owing to increased operating and finance costs

By MG News | October 24, 2018 at 04:17 PM GMT+05:00

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October 24, 2018 (MLN): Fauji Foods Limited (FFL) has stated 22.6% escalation in losses for the nine months period ended 30^th September 2018, prompted mainly by increased Operating expenses and Finance costs.

According to the notification issued to PSX, the top-line earnings of the company appreciated by a greater margin of 34.42% as compared to 27.07% increase in cost of sales, which led to the gross profits of the company mounting by 357.83%.

While there were no non-core expenses this year, the Distribution cost and Administrative cost exhibited a growth of 8.98% and 8.515 respectively, damaging the financial earnings of the company.

The increase in finance costs by 41.12% i.e. Rs. 134 million, however, gave the major blow to the financial stability of the company.

Furthermore, the company received no tax benefits for this year unlike last year, which led to the company enduring greater losses for the said period.

The Loss per share for the company was stated at Rs. 4.49 for the nine months period ended 30^th September 2018.

Profit and loss account for the nine months ended September 30th 2018 (Rupees)
	Sep-18	Sep-17	% Change
Sales - net	5,970,564,658	4,441,595,674	34.42%
Cost of sales	-5,518,504,102	-4,342,854,842	27.07%
Gross profit	452,060,556	98,740,832	357.83%
Marketing and distribution expense	-1,815,905,493	-1,666,332,868	8.98%
Administrative expenses	-334,678,832	-308,443,313	8.51%
Other income	12,391,586	20,331,895	-39.05%
Other expenses		-7,663,599
Finance cost	-461,639,312	-327,134,243	41.12%
Loss before taxation	-2,147,771,495	-2,190,501,296	-1.95%
Taxation	-226,561,851	253,810,774
Loss for the period	-2,374,333,346	-1,936,690,522	22.60%
Loss per share - basic and diluted	-4.49	-9.91	-54.69%

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