FFL's profit surges to Rs223.7m in Q3 2024

October 22, 2024 (MLN): Fauji Foods Limited (PSX: FFL) reported a robust profit after tax of Rs223.7 million in Q3 2024 compared to Rs39m in the same period last year, witnessing a surge of 478% YoY, the company's filing on PSX revealed today. 

The company attributed this performance to margin accretive growth, cost reduction and capability. 

Margin Accretive Growth:

Nurpur UHT milk remains the fastest growing Milk brand in Pakistan. It recorded 47% revenue growth in the 9 months of 2024 vs SPLY. The strategic acquisition of the cereal business in Feb 2024 helped diversify the portfolio and allows the business to own the breakfast table.

COGS Reduction:

The commercial sustainability is reflected through the improved structure of the P&L as Gross Margins increased from 11.9% in Q3 2023 to 14.8% in Q3 2024, while the 9-month Gross Margin increased by 5% vs SPLY to hit 18%.

This was driven by a continued focus on cost efficiencies backed by continuous improvement in the Supply Chain. As a result, FFL achieved Q3 2024 operating profit of Rs236m vs Rs68m in SPLY.

Capability:

The company is on its journey to build world-class capability across the organization. The First Management Trainee Program concluded this year and there are plans to broaden the scope in future.

Additionally, the digitization agenda is being driven across the businesses to harness insights for growth and efficiency.

Future Outlook:

Looking ahead, the investment in brands and distribution and high margin Cereals portfolio should continue to fuel the growth and deliver improved financial performance. Pasta launch later in the year will further strengthen the culinary credentials of the portfolio extending it beyond the breakfast table.

The company is confident that FFL, driven by its vision of "Unleashing Pakistan's promise in everything we touch", is on its path to achieve the goal of becoming a 100 bn business.

Copyright Mettis Link News