FrieslandCampina Engro Pak Ltd FY 2023 Results Announcement

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FrieslandCampina Engro Pak Ltd

FrieslandCampina Engro Pak Ltd Announces Financial Results for FY 2023

ISLAMABAD: (DNA) – FrieslandCampina Engro Pak Ltd (FCEPL) announced its financial results for the year ended December 31, 2023.

The Company continued its growth trajectory and delivered another record year with the highest-ever top line and operating profit.

This was in the face of a challenging macro-economic environment and intense competition.

The Company achieved a remarkable milestone, surpassing the PKR 100 billion topline mark with a 36% increase over last year.

FrieslandCampina Engro Pak Ltd-Profit after tax declined from PKR. 2.5 billion to PKR 1.5 billion

The Company witnessed a gross profit growth of 18% while gross margin declined by 218 bps.

Due to high inflation, global supply chain disruption, foreign exchange constraints and currency devaluation.

However, operating margin declined by115 bps over last year due to initiatives such as cost rationalization and efficiency building.

Profit after tax declined from PKR. 2.5 billion to PKR 1.5 billion in the same period last year due to a significant increase in finance cost.

Brand health indicators had a positive trajectory, setting the stage for long-term sustainable growth.

 

Dairy &Dairy-based Products Segment

Segment revenue: PKR 91.68B, up 38.3% YoY. Olper’s drove growth with brand/trade investments, leading in UHT Milk, Cream, Flavored Milk, and Tarang.

FrieslandCampina Engro Pak Ltd-Olper’s UHT continued to maintain its presence

Olper’s UHT continued to maintain its presence on air with its ‘Happy Mornings’ campaign across key touchpoints including TV, digital, social media, and in-store.

In the last quarter, the brand launched the 1½ Pao Economy Pack, supported by an integrated marketing campaign across all relevant consumer touchpoints, establishingit as the ideal serving size for a single breakfast consumption occasion.

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Olper’s flavored milk continued to drive presence on TV through it’s ‘No Break in Performance’ campaign, encouraging milk consumption in children. It also launched Olper’s All Stars, an animated film driving engagement with children through a relatable and engaging medium.

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Frozen Desserts Segment

The part of the company made PKR 8.56 billion in sales, growing by 19.2% from last year. They spent money wisely on starting activities for seasons and made use of celebrations. Also, they kept customers interested by bringing out three new things during the year.

Financial Performance

The financial performance of the company for the year ended December 31, 2023, is summarized below:

Full year ended
Dec 31, 2023
Variation
(PKR. in million)20232022
Net Sales100,23573,474+36%
Operating Profit6,1175,331+15%
% of sales6.1%7.3%-115 bps
Profit after tax1,5092,466-39%
% of sales1.5%3.4%-185 bps
Earnings / (Loss) per share (PKR)1.973.22

  

Future Outlook

The Company expects to face headwinds on both demand and supply sides due to inflationary pressures, declining consumer purchasing power and global supply chain disruptions. However, equipped with an agile business model, the management is confidentin its ability to to drive efficiencies across the value chain, build resilience, and future proof the business to deliver growth by staying relevant to consumers.

Dedicated to Nourishing Pakistan and improving the livelihoods of farmers, the Company will continue to advance its exemplary Dairy Development Program, which is designed to ensure inclusive growth and increased profitability for the dairy farmers, including women farmers.

Continued investments in brand equity, conversion to packaged milk and product portfolio expansion will remain a priority. With this strategy and distinctive positioning further combined with enterprising talent and emerging methodologies, the Company is poised for the next chapter in the food safety and nourishment narrative in Pakistan. Leveraging its global expertise and 150 years heritage, FrieslandCampina Engro Pakistan Limited remains committed to the highest standards of hygiene, food safety and sustainability, and will continue to provide safe, affordable, and nourishing dairy and dairy based products to millions of Pakistanis, every day.