Half-year financial results: FCEPL posts revenue growth – Business & Finance
KARACHI: Friesland Campina Engro Pakistan Limited (FCEPL) announced its financial results for the six-month period ended June 30, 2021. The company reported revenue of Rs 24.6 billion, growing 22% from last year, thanks to enhanced distribution and increased availability. of products, in addition to continued investments in brands.
The consecutive quarterly growth reflects a broader footprint of our brand portfolio across Pakistan.
The business climate remained difficult with record inflation leading to a sharp increase in commodity prices. The company was able to offset these peaks and improve the gross margin by 350 basis points compared to last year through several innovation and economy initiatives spanning the entire value chain. The resulting profit after tax shows an improvement of 430 basis points compared to last year, mainly due to a reduction in finance costs of 47%, thanks to reduced rates and efficient management of the fund. rolling.
DAIRY PRODUCTS AND BEVERAGES: With the gradual lifting of restrictions and blockages, the segment recorded sales of Rs 21.4 billion, up 17.6% from the same period last year. The improvement was led by Olper’s, which has seen steady growth through strong investments in the brand and trade. The segment continues to grow and invest in new channels to effectively serve consumers.
With a focus on improving accessibility and sustainability, the Olpers Budget Pouch was launched at a price of Rs50 in Pakistan. This innovative multi-portion packaging offers a strong value proposition that allows consumers to experience the natural benefits of milk in a safe, healthy and affordable way. Other recent launches include Olper’s Flavored Milk, Olper’s Full Cream Milk Powder (FCMP), Olper’s Cream, Olper’s Pro-Cal, Tarang Tea Whitening Powder (TWP), and Tarang Elachi, all of which have gained healthy market share in little time. of time. time despite strong competition from established players. The company will continue to leverage Friesland Campina’s global expertise to introduce new products and innovations as a key driver for the company’s future growth.
ICE CREAM AND FROZEN DESSERTS: preventive out-of-home activities and an early start to summer led to our highest volumes ever recorded in the first half of the year, with growth of 63.6% year-on-year last and revenues of Rs3 148 million against a turnover of Rs1.924 million in the same period last year. The business segment aroused enthusiasm by launching 4 new products and its buzz-generating “summer blockbuster” and “wow bhara bite” campaigns. The increased use of e-commerce continues to improve the breadth and depth of our customer base.
FUTURE PROSPECTS: The dairy industry welcomes the government’s initiative to restore the zero rate on milk through the recent finance law. At Friesland Campina Engro Pakistan Limited, our goal is to transform the health and well-being of Pakistanis today and for generations to come. This change allows us to better serve our purpose by developing new products, improving accessibility and availability, and investing in public awareness campaigns – in partnership with the Pakistan Dairy Association and the Government of Pakistan, to accelerate converting to safe, hygienic and nutritious packaging. milk, and thus improve public health.
This government support also allows us to further contribute to our dairy development program, which is designed to ensure inclusive growth of our national network of dairy farmers, by providing knowledge and training in yield management, best agricultural practices and veterinarians, as well as support for capital investment that cumulatively translates into better livelihoods for our farmers; an essential component of our corporate purpose.
With higher yields to farmers and increased acceleration in conversion to packaged milk, the company anticipates long-term and sustainable growth in both capital expansion and value creation for our shareholders.
The company remains committed to the highest standards of hygiene, food safety and sustainability, and will continue to leverage its global expertise and 150 years of experience to deliver safe, affordable and affordable dairy products every day. nourishing millions of Pakistanis.-PR
Copyright Business Recorder, 2021