FrieslandCampina Engro Pakistan declares financial results for 9 months

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Observer Report
Karachi

Friesland Campina Engro Pakistan Limited announced its financial results for the nine months ended September 30th, 2021.

The Company reported net revenue of PkR 38.7 billion, representing 19% growth versus last year.

This milestone was attained by developing new channels, increasing market penetration, improving route to market, and enhancing investment across brands.

These initiatives reflect Friesland Campina Engro Pakistan Limited’s unwavering commitment to provide all-purpose nutrition across Pakistan.

The business environment faced unprecedented economic challenges due to currency devaluation and all-time high commodity prices.

However, the Company has effectively navigated through these challenges to grow sales volumes, and simultaneously improve Gross Margin by 403bps versus last year through continued focus on mix management and saving initiatives throughout the value chain.

Furthermore, effective controlling of other costs, reduced rate of borrowing and effective working capital management has led to an improvement in profit after tax by 407bps versus last year.

On September 8th, FrieslandCampina, one of the largest dairy cooperatives globally, celebrated its milestone 150-year anniversary of delivering superlative dairy products and nutritional excellence.

In line with this long-standing commitment, during the year FrieslandCampina Engro Pakistan Limited along with the Pakistan Dairy Association has renewed its efforts of creating mass awareness around nutrition and safe milk consumption.

The Company also inaugrated a Farmer Helpline to facilitate existing and potential dairy farmers.

Additionally, the Company partnered with financial institutions to launch a digital “Supplier Financing Solution” with the aim to fuel growth for the SME sector by supporting the working capital requirements of small businesses.

DAIRY AND BEVERAGES SEGMENT: With COVID-19 related restrictions easing, the segment reported net revenue of PkR 33.8 billion registering 16.8% growth compared to the same period last year.

The improvement was achieved by adding 6000 stores to the retail network during the year, coupled with 14X growth in e-commerce volumes.

Olper’s and its value-added products (Cream and Flavored Milk) led this growth with strong brand and trade investments.

With the strategic aim of improving accessibility and sustainability, the Olper’s economy pouch was launched at a PkR 50 price point in Pakistan.

This innovative, multi-serve pack offers a strong value proposition which 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 Creams, 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 FrieslandCampina’s global expertise to introduce new products and innovations as a key driver of future business growth.

 

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