Karachi April 25 2024: Fauji Foods Limited recorded its 4th consecutive PAT positive quarter, reporting PKR 103 Mn in Q1 2024. The YTD revenue of Rs 5.6 bn (+7.8% vs SPLY) reflects the sustained growth momentum for the business.
Nurpur UHT milk continues to drive growth and remains the fastest growing Milk brand in Pakistan. The successful marketing campaign and Route to Market remain the main drivers. Led by our margin accretive growth strategy, the focus remained on driving value added portfolio in dairy and desserts segment.
In line with the strategy of Margin Accretive Growth, acquisition of Fauji Cereals (FC) business and Fauji Infraavest Foods Limited (FIFL) was completed on Feb 19 and Feb 20, 2024, respectively and their results are consolidated into FFL’s results of Q1 2024.
The commercial sustainability is reflected through the improved structure of the P&L as Gross Margins increased from 12.8% Q1 2023 to 19.5% in Q1 2024. This was driven by continued focus on cost efficiencies backed by continuous improvement in the Supply Chain. As a result, FFL achieved Q1 2024 operating profit of PKR 459 mn vs PKR 127 mn in SPLY, an increase of 261%. With the commercial strategy delivering results, the EBIDTA, which has been on a growth path, closed at PKR 509 mn in Q1 2024 from an EBITDA of PKR 253 mn, an increase of 101.5% over SPLY.
Looking ahead, the investment in brands and distribution infrastructure as well as high margin Cereals portfolio should continue to fuel the growth and delivery of improved financial performance. Pasta launch later in the year will further strengthen the culinary credentials of the portfolio extending it beyond the breakfast table. We are confident that FFL, driven by its vision of “Unleashing Pakistan’s promise in everything we touch”, will not only build a successful business but leave a mark on the broader national landscape for times to come.
