Karachi, October 16, 2023 – FrieslandCampina Engro Pakistan Limited (FCEPL) has reported strong financial results for the third quarter of 2023, achieving robust growth in its topline despite the challenging economic environment.
The company’s performance demonstrates a strong commitment to delivering value in the face of difficult operating conditions.
Here are the key financial highlights for FrieslandCampina Engro Pakistan Limited (FCEPL) in Q3 2023:
Strong Topline Growth: FCEPL delivered a remarkable 40% growth in revenue, generating PKR 73.8 billion in the nine months ending Q3 2023, compared to PKR 52.8 billion in the same period the previous year. This substantial growth was attributed to both increased volumes and higher value sales.
Gross Profit Growth: The company achieved a 23% growth in gross profit during this period. Despite this increase, the gross margin experienced a 200 basis point decline due to inflationary pressures on commodity and energy prices. In Q3 2023, the gross margin dropped by 458 basis points compared to the same period last year, primarily due to specific one-offs.
Operating Margin Resilience: The operating margin only experienced a 13 basis point decline compared to the previous year, highlighting the company’s ability to drive efficiency and rationalize costs throughout the value chain.
Profit After Tax: Despite the positive financial results, profit after tax slightly declined (PKR 1.57 billion compared to PKR 1.77 billion in the same period last year). This was attributed to a significant increase in finance costs and taxation.
In terms of its product segments:
Segment Growth: The dairy segment reported a significant 43% growth in revenue, reaching PKR 65.7 billion compared to the previous year. Key brands such as Olper’s led this growth by strengthening their leadership position in the market through brand and trade investments.
Other Brands: Other brands like Olper’s full-cream milk powder (FCMP), Olper’s Cream, and Tarang have also gained healthy market share despite competition from established players.
Occasions and Innovations: The ice cream segment reported revenue of PKR 8.1 billion, reflecting a 20% growth compared to the same period the previous year. This growth was attributed to timely investments in occasions and innovations.
FrieslandCampina Engro Pakistan’s focus is on transforming the health and well-being of Pakistanis by providing nutritious dairy products and enhancing the livelihood of farmers. While they anticipate challenges due to inflation, high-interest rates, and declining consumer purchasing power, the company remains committed to driving efficiency, brand investments, and a profit-accretive portfolio.
FCEPL’s global expertise and heritage of over 150 years enable them to maintain the highest standards of hygiene, food safety, and sustainability while providing safe, affordable, and nourishing dairy products to millions of Pakistanis every day.
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