Lahore May 6 2022: During the first three months of current calendar year, Fauji Foods Limited (FFL) registered sustainable revenue growth in a challenging inflationary environment, according to information with the investors.
Particularly, its Nurpur UHT milk recorded an unprecedented volume growth of 47% over same quarter last year.
Moreover, the Company achieved highest ever sale of PKR 252 million just in food services sector in a single month of March 2022. Break through is achieved with international fast food chain where Nurpur cheese is now the sole supplier.
Company’s largest offering, Dostea that constitutes 61% of volume was adversely affected by an industry wide price increase driven by various circumstances. As
a result the category has lost 30% volume in the first quarter.
The Company’s input & overheads cost remained under pressure due to increasing inflation in the country, however that increased cost was managed by innovating in way of doing business.
FFL took a strategic decision to invest behind the umbrella brand – Nurpur. After a hiatus of 4 years PKR 100 million were invested on the brand in marketing activities, ATL, BTL and digital. We will continue to reap the benefits of this investment in the coming years/quarters.
During the period under review, net sales stood at Rs 2,403 million compared with Rs 2,377 million during the corresponding period of last year. Gross profit of Rs. 169 million was 35.8% lower as compared with gross profit of Rs 264 million during the corresponding period of last year. The company was able to sustain revenue in an unprecedentedly turbulent time. Structural initiatives are in place to build the Gross Margin as planned.
The loss after tax for the quarter stood at Rs (499) million compared with a loss of Rs (347) million in the corresponding period of last year, higher by 43.7%.
Fauji Foods Limited was incorporated in Pakistan on 26 September 1966 as a Public Company. The company is the subsidiary of Fauji Fertilizer bin Qasim Limited.It is principally engaged in processing and sale of toned milk, milk powder, fruit juices , allied dairy and food products.
