FrieslandCampina Engro posts Rs321m profit for third quarter

KARACHI: FrieslandCampina Engro Pakistan Limited (FCEPL) on Friday announced its financial results to the Pakistan Stock Exchange (PSX).

According to the results, FCEPL registered a profit after tax of Rs321 million in the nine months ending September 30, versus a loss of Rs809 million during the same period last year. The company’s net sales stood at Rs32.4 billion in the nine month period, compared to Rs28.5 billion in the same period of 2019.

The company’s earnings per share stood at Rs0.42, compared to a loss of Rs1.05.

In a press release, FrieslandCampina Engro Pakistan said that the company had recorded the eighth consecutive quarter of robust topline growth and registered a 12pc growth versus last year.

The company, formerly known as Engro Foods, said that this year, the overall cost environment remained challenging, with record inflationary levels leading to a high increase in commodity costs over the last 12 months and sharp devaluation of the rupee.

“However, the company achieved a 220 bps improvement in gross margins versus the same period last year through multiple initiatives including cost optimization and mix management. The improvement in margins has been diluted somewhat by the higher borrowing costs on account of high interest rates in the first quarter.” the company said.

FCEPL’s dairy and beverages section registered a 16pc growth versus the same period last year, with the segment reporting a revenue of Rs28.9 billion. The company added to its portfolio by launching Olper’s Flavored Milk and Tarang Tea Whitening Powder in the first half of the year.

“Other recent launches like Olper’s full cream milk powder (FCMP), Olper’s Creams, Olper’s Pro-Cal and Tarang Elaichi have gained a healthy market share in a short span of time despite strong competition from established players,” the company claimed.

FCEPL said that the ice cream segment was impacted by the closure of retail and leisure spots due to COVID-19, which coincided with the ice cream summer season. Consequently, the ice cream and frozen dessert segment reported a revenue of Rs3.4 billion, versus a revenue of Rs3.6 billion in the same period last year. However, the segment recorded better volumes during Eid.

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