FrieslandCampina Engro registers Rs 321 million net profits during 9MCY20

October 16, 2020 (MLN): FrieslandCampina Engro Pakistan Limited (FCEPL) has reported net profits of Rs 321 million for the nine months ended on September 30^th, 2020 against the net losses of Rs 808 million of the corresponding period last year.

This has translated into earnings per share which clocked in at Rs 0.41 against the loss per share of Rs 1.05 in the aforementioned period.

The improvement in earnings seen in the financial results below is a result of higher volumetric sales, up by 13.62% YoY during the period. Despite an 11% YoY increase in the cost of sales, the gross profits of the company went up by 33% YoY, expanding the gross margins from 13% to 15%.

The company witnessed a decrease in its major expense heads as distribution & marketing expenses came down by 2.54% YoY from Rs 2.84 billion to Rs 2.77 billion. Moreover, administrative costs and other operating charges fell by 3.58% and 3.08%, YoY,  respectively.

As per the financial statement issued by the company, the other positive highlight is a 10% increase in other income. However, the company reported finance cost which surged by 19% YoY to clock in at Rs 1.03 billion, limiting the favorable impact of increased gross profits on the company’s net earnings.

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