Fauji Foods observes 47% YoY decline in net losses during CY20

January 26, 2021 (MLN): Fauji Foods Limited (FFL) ended CY20 with a net loss of Rs 3 billion, though it declined by 47% YoY from Rs 5.78 billion reported in CY19.

This translated into the company’s loss per share which diminished by 57% YoY from Rs 10.74 to Rs 4.62.

Despite a challenging business environment, the Company registered a topline growth of 28% YoY to Rs 7.37 billion from Rs 5.74 billion posted in the previous year.

As a result, FFL returned to posting a gross profit of Rs 62.26 million against a gross loss of Rs 678.8 million during CY19.

On the cost side, the company observed a 34.8% YoY decline in marketing and distribution expenses and 18.9% YoY contraction in administrative expenses which helped the company to recover some of its losses.

In addition, the company saw a whopping decline in tax expenses by 99% YoY to Rs 14.3 million from Rs 1.5 billion in the previous year, further provided a cushion to the company’s income.

Profit and Loss Account for the year ended December 31, 2020 (Rs)                       

 

Dec-20

Dec-19

% Change

Sales-net

 7,373,162,067

 5,744,872,328

28.3%

Cost of Sales

 (7,310,900,013)

 (6,423,699,048)

13.8%

Gross Loss

 62,262,054

 (678,826,720)

-109.2%

Marketing and distribution expenses

 (854,143,010)

 (1,309,604,707)

-34.8%

Administrative expenses

 (355,432,212)

 (438,268,935)

-18.9%

Loss allowance on trade debts

 –  

 (7,678,704)

 

Loss from operations

 (1,147,313,168)

 (2,434,379,066)

-52.9%

Other income

 98,704,064

 98,311,925

0.4%

Other expenses

 (242,918,870)

 (218,794,869)

11.0%

Finance cost

 (1,752,267,407)

 (1,698,166,696)

3.2%

Loss before taxation

 (3,043,795,381)

 (4,253,028,706)

-28.4%

Taxation

 (14,316,124)

 (1,535,908,768)

-99.1%

Loss for the period

 (3,058,111,505)

 (5,788,937,474)

-47.2%

Loss per share – basic and diluted (in Rupees)

 (4.62)

 (10.74)

-57.0%

Copyright Mettis Link News

Posted on: 2021-01-26T11:52:00+05:00

39388