April 25, 2024 (MLN): Fauji Foods Limited (PSX: FFL) recorded its fourth consecutive profitable quarter, reporting Rs103 million during the three months that ended March 2024.
The company earned a revenue of Rs5.6 billion, an increase of 7.8% compared to the same period of last year (SPLY), reflecting the sustained growth momentum for the business.
Nurpur UHT milk continues to drive growth and remains the fastest growing Milk brand in Pakistan.
The successful marketing campaign and Route to Market remain the main drivers.
Led by the company’s margin accretive growth strategy, the focus remained on driving value-added portfolio in the dairy and desserts segment.
In line with the strategy of Margin Accretive Growth, acquisition of Fauji Cereals (FC) business and Fauji Infraavest Foods Limited (FIFL) was completed on Feb 19 and Feb 20, 2024, respectively and their results are consolidated into FFL’s results of Q1 2024.
The commercial sustainability is reflected through the improved structure of the P&L as Gross Margins increased from 12.8% in Q1 2023 to 19.5% in Q1 2024.
This was driven by continued focus on cost efficiencies backed by continuous improvement in the Supply Chain.
As a result, FFL achieved a Q1 2024 operating profit of Rs459m as against Rs127m in SPLY, an increase of 3.6x YoY.
With the commercial strategy delivering results, the EBIDTA, which has been on a growth path, closed at Rs509m in Q1 2024 from an EBITDA of Rs253m, an increase of 2x over SPLY.
Looking ahead, the investment in brands and distribution infrastructure as well as high margin Cereals portfolio should continue to fuel the growth and delivery of improved financial performance, the company said.
Pasta launch later in the year will further strengthen the culinary credentials of the portfolio extending it beyond the breakfast table.
The company said that driven by its vision of “Unleashing Pakistan’s promise in everything we touch”, it will not only build a successful business but leave a mark on the broader national landscape for times to come.
| Consolidated (un-audited) Financial Results for quarter ended March 31, 2024 (Rupees in '000) | |||
|---|---|---|---|
| Mar-24 | Mar-23 | % Change | |
| Revenue from contracts with customers – net | 5,574,455 | 5,169,068 | 7.84% |
| Cost of revenue | (4,486,454) | (4,508,396) | -0.49% |
| Gross profit | 1,088,000 | 660,672 | 64.68% |
| Marketing and distribution expenses | (430,474) | (346,722) | 24.16% |
| Administrative expenses | (198,202) | (186,738) | 6.14% |
| Profit / (Loss) from operations | 459,325 | 127,212 | 261.07% |
| Other income | 92,250 | 69,820 | 32.13% |
| Other expenses | (339,849) | (468) | – |
| Finance cost | (8,084) | (299,778) | -97.30% |
| Profit / (Loss) before taxation | 203,642 | (103,214) | – |
| Taxation | (100,286) | (66,370) | 51.10% |
| Profit / (Loss) after taxation | 103,356 | (169,583) | – |
| Earnings / (Loss) per share – basic and diluted | 0.04 | (0.07) | – |
Copyright Mettis Link News
Posted on: 2024-04-25T15:22:14+05:00
