Karachi December 20, 2021: Fauji Foods Limited company equity has become positive after successful issuance of PKR7.8 billion right issue. Company reported negative equity of PKR5.2 billion as per latest quarterly available financials and after addition of PKR7.8 billion right issuance proceeds company will have more than PKR2 billion as positive equity.
The Company registered a topline growth of 26% during nine months ended 2021 vs 2020, despite the challenging business / covid environment. During Q3 2021, business activity continued to be impacted by covid-19 pandemic and imposition of related lockdowns and restrictions on business activities.
However, the Company made effective efforts to ensure all safety measures, while maintaining our food supply chain, meeting our customer requirements and developing consumer demand. The Company continues to consolidate gains and is further growing our business momentum and trajectory.
A L S O || R E A D
Fauji Foods Ltd FFL increased authorized capital by Rs8 billion
The Company is shaping a successful business model by implementing a focused strategy which includes strengthening innovation/renovation, portfolio management, driving visibility and availability, working effectively with customers and distributors, strengthening our milk collecting system, and improving operational efficiency across our value chain.
During Q3, the company’s input and overhead costs saw some pressure due to inflation. However, increased costs were managed through cost management initiatives which are being implemented across our value chain related to both variable and fixed costs. Our focus also remains on making NURPUR and DOSTEA the brands of people’s choice. We are committed to create value and transform for improvement within the Company and for our stakeholders.
During the period under review, net revenue stood at Rs. 6,682 million (compared to Rs. 5,319 million same period last year), leading to gross profit of Rs. 813 million, which is 1,467% higher compared to gross loss of Rs. (60) million during corresponding period of last year. The loss after tax for nine months ended 2021 reduced to Rs. (1,191) million, compared with Rs. (2,422) million in the corresponding period of last year (51% reduction).
The company is on the path to progress and recovery from is operating losses. The Company has entered into a growth phase with expansion in its Retail and Distribution footprint, Food Service customer base and portfolio to serve and delight consumers and customers. Cost optimization initiatives continue on the right path. Further enablers include our people capability and our growing emphasis on processes, technology and tools.
Despite the broader challenges and inflationary trends in the country, the management remains committed, dynamic and resilient to respond to these challenges with renewed strength and resilience in order to achieve its goals. Management continuously reviews and realigns business strategies to make the company’s business profitable.
