Staff Reporter
Karachi
FrieslandCampina Engro Pakistan Limited (FCEPL) announced its results to the Pakistan Stock Exchange on October 16th, 2020. Despite challenging times due to the COVID 19 pandemic, the Company recorded an 8th consecutive quarter of robust topline growth and registered a 12% growth versus last year.
The overall cost environment remained challenging, with record inflationary levels leading to a high increase in commodity costs over the last 12 months and sharp devaluation of the Pak Rupee. However, the Company achieved a 220 bps improvement in gross margins versus the same period last year through multiple initiatives including cost optimization and mix management. The improvement in margins has been diluted somewhat by the higher borrowing costs on account of high interest rates in the first quarter. Accordingly, FCEPL registered a profit after tax of Rs 321 million versus a loss of Rs 809 million in the same period last year.
Led by FCEPL’s largest brand Olper’s, the Dairy and Beverages segment registered a 16% growth versus the same period last year. The segment reported a revenue of Rs. 28.9 billion. The Company added to its portfolio by launching Olper’s Flavored Milk (fortified with added vitamins and minerals) and Tarang Tea Whitening Powder (at an affordable Rs. 10 price point) in the first half of the year. Other recent launches like Olper’s full cream milk powder (FCMP), Olper’s Creams, Olper’s Pro-Cal.
