Karachi October 27 2021: With relaxation in COVID measures due to lowest positivity rate since the start of the pandemic, the retail footprint continues to grow where the Frieslandcampina Engro Pakistan Limited (FCEPL) has added 6000+ stores during the year as per information provided by the company.
This coupled with 14 time growth in e-commerce volumes vs last year has enabled the segment to report a revenue of PKR 33.8 billion, registering a 16.8 percent growth vs the same period last year. The growth for the segment was led by Olper’s where the UHT Milk continues to drive conversion from loose milk and the value-added products such as Cream and Flavored Milk continue to increase value contribution.
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The growth was made possible on the back of strong brand and trade investments. The business’s recent launches include Olper’s UHT in pouch packaging, Olper’s Flavored Milk, Olper’s Full Cream Milk Powder (FCMP), Olper’s Creams, Olper’s Pro-Cal, Tarang Tea Whitening Powder (TWP) and Tarang Elachi, all of which have gained a healthy market share in a short span of time despite strong competition from established players. The Company will continue to leverage FrieslandCampina’s global expertise to introduce new products and innovations as a key driver of future business growth.
The opening of retail outlets nationwide with extended hours together with the early start of summer season has led to the highest ever volumes in the nine months with revenue of PKR 4.9 billion and growth of 41.7 percent versus last year. The investment in the segment was focused around creating excitement by introducing four new products and brand building through the “summer blockbuster” and “wow bhara bite” campaign. The category has also successfully inducted cabinets and trikes during the 9 months as part of growing its trade footprint across Pakistan.
During first nine months of 2021, FrieslandCampina Engro Pakistan Limited and Standard Chartered Bank Pakistan Limited (SCBPL) have extended their partnership to launch the first ever digital “Supplier Financing Solution” with the aim of fueling growth for the SME sector by supporting the working capital requirements for small businesses. This initiative enables Company’s small-to-medium sized vendors to avail short-term financing via early payment of approved invoices at preferential rates. The partnership between the Company and SCBPL includes many other initiatives, aimed at establishing a permanent and sustainable financing model in line with the State Bank’s objectives. This enables small businesses that are otherwise unable to offer security / collateral to access bank financing at attractive rates.
The Company also participated in the Government’s “Greener Pakistan Initiative” by distributing seed paper with every order of Ice Cream on the Independence Day.