Lahore January 23 2024: Fauji Foods LImited delivered Rs 605 mn PAT in FY 2023 against a loss of Rs 2.2 bilion last year as the company has now been in the green for nine months.
The three strategic pillars of a) Margin Accretive Growth b) COGS reduction and c) Capability Development helped deliver a Revenue of Rs 19.8 bn (+60%), GP of Rs 2.98 bn (+207%), EBIDTA of Rs 1.09 bn (443%). The PAT includes deferred tax income of Rs 596 mn.
Nurpur continued to drive volume growth. The successful marketing campaign and Route to Market have ensured that Nurpur remains the fastest growing UHT milk in Pakistan for second successive year. The strategic pivot to margin accretive portfolio continues to deliver results as the entire value portfolio grew by 98.5% in value.
The commercial sustainability is reflected through improved structure of the P&L as Gross Margins increased from 7.8% to 15.1% in 2023. This was achieved through focus on cost efficiencies backed by twin sustainability projects of 1 MW solar and biomass. These projects along with optimized sourcing and improved efficiencies across the entire value chain helped counter the high inflation in 2023.
All of the above was underpinned through a cultural shift and a strong talent backbone.
A fact reflected in Employee engagement score that not only is ahead of the industry benchmark but has nearly tripled in three years.
“The investment in brands and distribution infrastructure should continue to fuel the growth. To further compliment the growth and as part of its “Margin Accretive Growth strategy” FFL received the board and shareholders’ authorizations in Q4 2023 to acquire Fauji Cereals and Fauji Infraavest (Pasta). The compelling synergies across the three businesses will broaden the margin base and improve the P&L structure” says Company Chairperson Waqar Ahmed Malik.
“This allows FFL to own the breakfast table and extend its portfolio across multiple culinary occasions. The acquisitions, once completed (post statutory approvals), are expected to be EPS accretive” Malik Added.
Malik is 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.
