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Friesland Campina Engro Pakistan posts strong financial results

Friesland Campina Engro Pakistan Limited (FCEPL) announced its financial results for the half year ended June 30, 2021. The Company reported revenue of Rs24.6 billion registering 22 per cent growth over last year, on the back of strengthened distribution and increased availability of products, in addition to ongoing investment in brands. The consecutive quarter-on-quarter growth reflects a wider footprint of our portfolio of brands across Pakistan.

The business climate remained challenging with record inflation leading to a steep increase in commodity prices. The Company has managed to offset these spikes and improve Gross Margin by 350bps over last year through several innovation-related and saving initiatives spanning the entire value chain. The resultant profit after tax shows an improvement of 430bps versus last year, primarily due to a reduction in finance cost of 47%, as a result of reduced rates and effective management of working capital.

DAIRY AND BEVERAGES: With restrictions and lockdowns gradually lifting, the segment reported a revenue of Rs21.4 billion, growing 17.6% compared to the same period last year. The improvement was spearheaded by Olper’s, which has grown consistently due to strong brand and trade investments. The segment continues to build and invest in newer channels to serve consumers effectively.

With a focus on improving accessibility, and sustainability, the Olpers Economy Pouch was launched at Rs 50 price point in Pakistan. This innovative multi-serve pack offers a strong value proposition for enables consumers to experience the natural goodness of milk in a safe, healthy and affordable manner.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 a healthy market share in a short span of 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 future business growth.

Filed Under: Pakistan

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