PREMA’s profits balloon by 5.3x YoY in 1HFY22

February 24, 2022 (MLN): At-Tahur (PSX: PREMA), a pioneer in the pasteurized dairy sector has made remarkable progress throughout its journey and continuing its tradition to give strong valuation, the company posted profits worth Rs410 million (EPS: Rs2.07) during the first half ended on December 31, 2021, up by 5.3x YoY, compared to Rs77.16mn (EPS: Rs0.39) in the same period last year.

The strong business growth of PREMA is supported by the expansion of processing facilities and improving efficiencies for delivering the best nutrition and positive impact on the lives of its consumers.

The top line of the company jumped by 26% to clock in at Rs1.48bn in 1HFY22. In order to grow its sales further, the company has imported 375 Holstein Friesian cows which will add approximately 2.3 million litres per year to the company’s current production of milk.

The company’s current revenue mix comprises 70% from pasteurized milk and the rest being value-added products like laban, chunkies, and butter to improve its scale of business in terms of value-added products, the company is in the process to explore other avenues as there is huge potential for expansion to fulfil the nutritional need of growing population base.

On the cost front, the company witnessed a surge in its distribution and selling expense of 24.45% YoY and 23% YoY to stand at Rs111.2mn and Rs89mn, respectively on the back of increasing sales.

The bottom line of the company has also been supported by the three-fold jump in other income to clock in at Rs4.169mn in the review period.

 Meanwhile, the company also paid Rs23mn in terms of taxation, up by 53% YoY in 1HFY22.

To note, PREMA has been conferred with 'Brand of the Year Award” for two consecutive years i.e. 2019 & 2020 in the Milk & Yogurt category, by the brand foundation FPCCI for setting high benchmarks for quality and customer care, by producing fresh, pure and nourishing products to ensure the well-being of its customers.

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