Fauji Foods’ net loss increases by 44% YoY in 1QCY22

April 21, 2022 (MLN): Fauji Foods Limited (FFL) has announced its financial results for the quarter ended March 31, 2022. As per the results, the company incurred huge losses of Rs499 million (LPS: Rs 0.32), up by 43.7% YoY against the net losses of Rs347mn in 1QCY21.

This increase in net losses is mainly due to lower gross margins and higher operating expenses.

Pursuant to the statement, the topline of the company witnessed just a mere 1% increase on a year-on-year basis to Rs2.4bn in 1QCY22 but more than a proportionate increase in the cost of sales made the gross profits decline by 36% YoY to Rs169mn. Therefore, the gross margin shrunk from 11.09% to 7.04%.

With regards to the major expenses, the company saw a 54% YoY increase in the major expense head i.e marketing and distribution expenses that clocked in at Rs336mn in 1QCY22. Similarly, administrative expenses surged by 38% YoY to Rs111mn during the period under review.

On the other hand, the finance cost of the company tumbled by 26% YoY to Rs232mn, providing some cushion to its bottom line.

On the tax front, the company paid taxes worth Rs30.7mn, down by 15.6% in the first quarter of the CY22.

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