FCEPL profit surges 46% YoY in 2024

February 14, 2025 (MLN): FrieslandCampina Engro Pakistan Limited (PSX: FCEPL) posted an impressive 46.02% year-on-year (YoY) increase in profitability for the year ended December 31, 2024.

FCEPL has declared a final cash dividend of Rs. 2.8 per share (28%).

The company’s profit after tax surged to Rs2.20 billion, translating into earnings per share (EPS) of Rs2.87, up from Rs1.51bn (EPS: Rs1.97) in 2023.

The company’s revenue grew by 6.80% YoY, reaching Rs107.05bn compared to Rs100.24bn in the previous year.

This growth was accompanied by a 5.98% rise in the cost of sales, which stood at Rs90.02bn.

As a result, the gross profit improved by 11.37% YoY to Rs17.03bn from Rs15.29bn in 2023.

However, the gross margins showed slight improvement due to better cost management.

On the expense front, distribution and marketing expenses increased by 6.54% YoY, amounting to Rs8.29bn, while administrative expenses showed a marginal decline of 2.52%, standing at Rs1.82bn.

Other operating expenses rose significantly by 59.85% to Rs564 million, adding pressure on profitability.

Meanwhile, other income declined sharply by 41.90% to Rs482mn from Rs831mn last year.

Despite these challenges, the compnay recorded an 11.73% YoY increase in operating profit, reaching Rs6.83bn.

However, finance costs rose by 4.23% to Rs3.26bn due to the higher interest rate environment. Nevertheless, profit before taxation showed a strong 19.56% YoY increase, climbing to Rs3.58bn from Rs2.99bn.

On the tax front, the company reported a 7.38% decrease in tax payments, bringing it down to Rs1.37bn compared to Rs1.48bn in 2023.

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