Observer Report
FrieslandCampina Engro Pakistan Limited (FCEPL) announced its financial results on Thursday. The Company reported Q1 revenue of Rs. 11.6 billion, registering 18%growth year-over-year, illustrating strong and sustained topline growth.
Facingsharp increases in commodity costs due to inflation,and Covid-19 related challenges, the Companytook initiatives to improve cost-efficienciesand accelerate financial performance. As a result, the Gross Margins improved by 480bps compared to last year.
The business also continued to drive efficiencies in distribution and administrative expenses through multiple savings initiatives.
Consequently, the Company registered a profit after tax of Rs 547 million versus a loss of Rs 131 million in the same period last year.
Led by its largest brand, Olper’s, the Dairy and Beverages segment reported revenues of Rs. 10.7 billion, registering a 15% growthon a YOY basis.
The Company added to its portfolio by launching theOlper’s UHT Economy Pouchat a Rs 50 price point – the first of its kind.
