Frieslandcampina Engro Foods earns Rs1.5bn profit in 2023

February 16, 2024 (MLN): Frieslandcampina Engro Foods Limited (PSX: FCEPL) saw a 38.8% YoY fall in profitability in the year 2023, with its profit after tax reaching Rs1.51 billion [EPS: Rs1.97].

This marks a significant decline from the previous year's profit of Rs2.47 billion [EPS: Rs3.22].

Going by the results, the company's top line increased by 36.42% YoY to Rs100.24bn as compared to Rs73.47bn in SPLY.

The cost of sales rose by 39.86% YoY but was lesser than proportionate to sales increase, which improved the gross profit by 19.00% YoY to Rs14.41bn in 2023.

However, the gross margins worsened to 14.37% as compared to 16.48% in SPLY.

During the review period, other income grew by 29.48% YoY to stand at Rs1.71bn in 2023 as compared to Rs1.32bn in SPLY.

On the expense side, the company observed a rise in distribution and marketing expenses by 31.12% YoY while other expenses fell by 20.96% YoY to clock in at Rs7.78bn and Rs353.07m respectively during the year.

The company’s finance costs surged by 2.27x YoY and stood at Rs3.13bn as compared to Rs1.38bn in 2022, mainly due to higher interest rates.

On the tax front, the company paid a slightly lower tax worth Rs1.48bn against the Rs1.49bn paid in the corresponding period of last year, depicting a decrease of 0.25% YoY.

Amount in thousand except for EPS

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