FFL’s losses surge to Rs1.25bn in 1HCY22

July 22, 2022 (MLN): The net losses of Fauji Foods Limited (PSX: FFL) have expanded by 65% YoY for the half year ended on June 30, 2022 to clock in at Rs1.25 billion (LPS: Rs0.79), compared to the losses incurred in 1HCY21 Rs758 million (LPS: Rs0.97) as per the financial statement revealed by the company on Friday.

The topline of the company witnessed a meagre increase of 6.8% YoY as the revenue in 1HCY22 stood at around Rs4.8bn compared to Rs4.5bn in 1HFY21. However, the cost of revenue remained 16% higher during the same period which has suppressed the gross profit of the company by 67% YoY.

Though company has strengthened its retail network in northern regions and it is also penetrating the southern market by enhancing its footprint in Karachi, the rise in energy/fuel prices badly impacted the cost of sales.

With regards to the major expenses, the company observed a 39% increase in terms of marketing and distribution expenses to clocked in at Rs677mn in 1HCY22 while the administrative expenses moved up by 19% YoY to stand at Rs209mn during the period under review.

Meanwhile, the finance cost of the company has dropped by 10.6% to register at Rs565.36mn in 1HCY22, compared to Rs635.64mn in 1HCY21.

The other income of the company surged by 33% during the period to lock in at Rs81mn, while the company observed a decline of 11.3% in terms of taxes during the period under review.

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