Karachi February 28 2022: Key foundation blocks of Fauji Food Limited (FFL) strategy include relying on the innovation/renovation program, stated in a report submitted at the exchange.
Nurpur Cream is the brand-new entrant in the market. Its growth pattern has suggested that company’s consumers look towards Nurpur for quality and nourishment. Keeping the consumer convenience at the forefront of company’s thought, the all-time favorite Nurpur Butter was launched in a butter tub. In addition, keeping the consumption trends in mind, a variant of Unsalted Butter was introduced, which now acts as a staple for every household.
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Nurpur Cheese came in to the picture with a revamped packaging and improved quality further fortifying our position in the consumer’s mind of being the ‘dairy expert’.
“Further exciting launches are in the pipeline. Consumer testing of company innovation funnel (products, concepts) is showing promising opportunities for the Company moving forward.” Says Chief Executive Officer Ebad Khalid
However, company has not disclosed any details about the launch of the products and timing of product launch.
The Company, In face of all external challenges, achieved an Impressive 16.5% growth In net revenue, PKR 8.6 billion compared with PKR 7.4 billion in 2020. This performance shines further as we maintained company Operating Expenses in relation to the previous year. The company rode the wave of challenges faced during Covid to achieve this feat.
The Operational Losses for the year decreased by a mammoth 59%, further reinforcing the growth trajectory and fortifying financial health of the Company. This figure is all the more impressive when we account for the challenges posed by inflationary and socio-economic pressures.
Growth momentum picked up a strong pace during 2021 and trajectory shows a very encouraging trend. This growth provides a concrete foundation for the company to build its future on. It has helped the Company attaining a healthy contribution margin that continues improving the gross profit trend. A gross profit of PKR 921 million in 2021 compared with a gross profit of PKR 62 million in 2020 is testimony of the direction and outcome of the reshaped business model.
Through fundamental business model improvements, the Company was able to achieve its targeted growth and profit recovery. These improvements were only possible by relying on a culture of consumer and customer centricity. The optimal use of value chain aids in driving effectiveness and operational efficiency across the Company. Under the presence of a dynamic leadership, capabilities were enhanced and a cross functional model helped the Company in achieving its targets in a seamless manner.
Company’s strategy includes a big focus on improving cost competence across company’s value chain. Benchmarking, target setting and implementation of cost management initiatives is enabling significant progress in variable as well as fixed costs.
Strengthening Milk Collection, Agri Services and Key Raw Materials Procurement Expertise Improvement of capabilities and supplier/farmer development initiatives strengthens company’s sustainability of milk supply and other key raw materials.
In the Extraordinary General Meeting held on July 28, 2021, Shareholders have approved, through a special resolution, an increase in Authorized Capital to 18,000 million Shares of Rs. 10 /- each from 10,000 million Shares of Rs. 10 /- each. Further during the year Board of Directors on September 04, 2021, approved 97.2% right issue of shares of the Company in aggregate amount of PKR 7,807,945,960 (Seven Billion Eight Hundred Seven Million Nine Hundred Forty Five Thousand Nine Hundred Sixty) divided into 780,794,596 (Seven Hundred Eighty Million Seven Hundred Ninety Four Thousand Five Hundred Ninety Six) shares of PKR 10 each. The issuance of right shares has strengthened the Company’s equity and liquidity.
