Fauji Foods Limited (FFL), a subsidiary of Fauji Fertilizer Bin Qasim Limited, has announced its intention to acquire Fauji Foundation’s equity stake in Fauji Infraavest Foods Limited and Fauji Cereals.
According to a notice issued to the Pakistan Stock Exchange (PSX) on Tuesday, FFL said that the potential transactions are subject to all internal, regulatory, and third-party approvals.
FFL is a leading company in the dairy and food sector, selling products such as milk, yogurt, cheese, butter, juices, and ice cream.
The notice did not disclose the financial details or the rationale behind the acquisitions. However, FFL has been expanding its product portfolio and market share in recent years, with the help of equity injections from its group companies.
Fauji Foundation’s subsidiaries have invested Rs30 billion in FFL since 2016, when they acquired 75% stake in the company from the former owners, the Hayat Noon family.
FFL posted a profit after tax (PAT) of Rs38.5 million in the third quarter of FY2023, compared to a loss of Rs1.2 billion in the same period last year. Its revenue for the first nine months of 2023 increased by 83% to Rs14.8 billion, as it benefited from the recovery in consumer demand and the easing of Covid-19 restrictions.
Fauji Infraavest Foods Limited is a joint venture between Fauji Foundation and Infraavest GmbH, a German company. It produces potato flakes and granules for the domestic and export markets.
Fauji Cereals was established in 1954 in collaboration with Quaker Oats, England and started trial production operation by end 1956. It is one of the pioneer commercial ventures of Fauji Foundation that produces breakfast cereals, corn flakes and porridge.