FrieslandCampina Engro Pakistan Limited (FCEPL) announced its financial results for Q3, 2023. The company delivered strong topline growth of 40% despite the challenging operating environment and economic slowdown. The Company generated revenue of PKR 73.8 billion for the nine months ended, compared to PKR 52.8 billion in the same period last year, fueled by both volume and value growth. The Company witnessed gross profit growth of 23 %, while the gross margin declined by 200 bps due to inflationary pressure on commodities and energy prices. In Q3’23, the gross margin declined by 458 bps compared to the same period last year, primarily attributable to one-offs in the preceding year, in addition to the aforementioned factors. The operating margin only declined by 13 bps over last year due to initiatives such as cost rationalization and driving efficiencies across the value chain. However, the profit after tax (Rs. 1.57 billion vs. Rs. 1.77 billion in the same period last year) as a percentage of sales declined by 121 bps due to a significant increase in finance costs and taxation. The segment reported revenue of Rs. 65.7 billion, reflecting a growth of 43% compared to the same period last year. Olper’s, our flagship brand, led the growth in the segment by strengthening its leadership position in the market through consistent brand and trade investments. Our other brands like Olper’s full-cream milk powder (FCMP), Olper’s Cream, and Tarang have also gained a healthy market share despite competition from established players. The segment reported revenue of Rs. 8.1 billion, reflecting a growth of 20% compared to the same period last year. This growth has been enabled by timely investments in occasions and innovations.