April 26, 2024 (MLN): Frieslandcampina Engro Foods Limited (PSX: FCEPL) recorded a drop of 32.88% YoY in its profitability, clocking in its profit after tax at Rs664.77 million [EPS: Rs0.87], compared to a profit of Rs990.36m [EPS: Rs1.29] in the same period last year (SPLY).
Going by the results, the company's top line marked an increase of 21.3% YoY to Rs27.46bn as compared to Rs22.65bn in SPLY.
The cost of sales rose by 26% YoY but as sales grew by a greater proportion, the gross profit improved by 1.1% YoY to Rs4.41bn in 1Q2024.
Accordingly, the gross margins worsened to 16.04% as compared to 19.24% in SPLY.
The expense section of the P&L statement shows that the company observed a fall in Administrative Expenses by 0.4% YoY and other expenses by 60.7% YoY to clock in at Rs427.63m and Rs104.41m respectively during the review period.
On the other hand, the distribution and marketing expenses ticked up and were recorded at Rs2.17bn during the quarter as compared to Rs1.96bn in 1QCY23.
FCEPL's other income dropped 4.2% YoY to stand at Rs264.57m in 1Q2024 as compared to Rs276.19m in SPLY.
The company’s finance cost spiked by 76.3% YoY and stood at Rs865m as compared to Rs490.56m in SPLY, mainly due to higher interest rates.
On the tax front, the company paid a lower tax worth Rs440.9m against the Rs501.27m paid in the corresponding period of last year, depicting a fall of 12% YoY.
Higher sales and efficient management of expenses were overshadowed by a significant increase in the company's finance costs, resulting in a drop in profits for this quarter.
| Statement for profit and loss for quarter ended March 31, 2024 (Rupees in '000) | |||
|---|---|---|---|
| Mar 24 | Mar 23 | % Change | |
| Sales | 27,463,601 | 22,650,926 | 21.25% |
| Cost of sales | (23,057,659) | (18,293,886) | 26.04% |
| Gross Profit/ (loss) | 4,405,942 | 4,357,040 | 1.12% |
| Administrative Expenses | (427,634) | (429,409) | -0.41% |
| Distribution and marketing expenses | (2,167,800) | (1,956,334) | 10.81% |
| Other Income | 264,568 | 276,192 | -4.21% |
| Other Operating Expenses | (104,405) | (265,298) | -60.65% |
| Finance Cost | (864,996) | (490,557) | 76.33% |
| Profit/ (loss) before taxation | 1,105,675 | 1,491,634 | -25.87% |
| Taxation | (440,902) | (501,271) | -12.04% |
| Net profit/ (loss) for the period | 664,773 | 990,363 | -32.88% |
| Basic earnings/ (loss) per share | 0.87 | 1.29 | – |
Amount in thousand except for EPS
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Posted on: 2024-04-26T12:04:10+05:00
