Contents
company information | 2 |
directors' report | 3 |
condensed interim statement of financial position | 7 |
condensed interim statement of profit or loss | 8 |
condensed interim statement of comprehensive income | 9 |
condensed interim statement of changes in equity | 10 |
condensed interim statement of cash flows | 11 |
notes to the condensed interim financial statements | 12 |
directors' report (Urdu version) | 20 |
01
company information
Board of Directors
Mr. Abdul Samad Dawood (Chairman)
Mr. Ali Ahmed Khan (CEO)
Mr. Abrar Hasan
Mr. Robert ter Borg
Ms. Petra Attje Zinkweg
Mr. Roeland Francois Van Neerbos
Mr. Zouhair Abdul Khaliq
Chief Financial Officer
Mr. Imran Husain
Company Secretary
Ms. Muneeza Iftikar
Members of Audit Committee
Mr. Abrar Hasan (Chairman)
Mr. Robert ter Borg
Mr. Zouhair Abdul Khaliq
The secretary of committee is
Ms. Maria Umar Memon, GM Internal Audit Department
Bankers
Conventional
Allied Bank Limited
Askari Bank Limited Bank Al-Falah Limited Bank Al-Habib Limited Citibank N.A.
Faysal Bank Limited
Habib Bank Limited
Habib Metropolitan Bank Limited MCB Bank Limited
National Bank of Pakistan Samba Bank Limited
Standard Chartered Bank Pakistan Limited Summit Bank Limited
Telenor Microfinance bank United Bank Limited
The Bank of Punjab
Shariah Compliant
Meezan Bank Limited
Auditors
A. F. Ferguson & Company
Chartered Accountants
State Life Building No. 1-C
I.I. Chundrigar Road
Karachi - 74000, Pakistan.
Tel: +92(21) 32426682-6 /32426711-5
Share Registrar
M/s. FAMCO Associates (Private) Limited 8-F, Next to Hotel Faran, Block-6, PECHS, Shahrah-e-Faisal Karachi - Pakistan
Tel: +92(21) 34380104-5,34384621-3 Fax +92(21) 34380106
Registered Office
5th Floor, The Harbor Front Building HC-3, Marine Drive, Block - 4, Clifton Karachi - 75600, Pakistan.
Tel: +92 (21) 35296000 (9 lines)
Fax: +92 (21) 35296010
E-mail: shareholders.pk@frieslandcampina.com
Website: www.frieslandcampina.com.pk
FRIESLANDCAMPINA ENGRO PAKISTAN LIMITED | 02 |
FIRST QUARTER ENDED 2023 |
DIRECTORS' REPORT
On behalf of the Board of Directors of FrieslandCampina Engro Pakistan Limited (a majority- owned subsidiary of FrieslandCampina Pakistan Holdings B.V.), we are pleased to submit the report and the condensed financial information of the Company for the three months ended March 31, 2023.
BUSINESS OVERVIEW
Despite challenging operating environment and slowdown in economic growth, the Company delivered a topline growth of 62% (revenue of PKR 22,651 million against PKR 13,971 million in the same period last year) on the back of volume growth, mix improvement, and distribution expansion supported by uninterrupted supplies by our agile supply chain. The Company delivered cost efficiencies across the value chain to offset inflation and currency devaluation and improved its gross margin and operating margin by 70 bps and 30 bps respectively. However, the profit after tax (Rs 990 million vs Rs 664 million same period last year) as a percentage of sales declined by 40 bps due to an increase in finance cost and taxation.
DAIRY-BASED PRODUCTS SEGMENT
With a growth of 66% versus Q1 2022, the segment reported a revenue of Rs. 21.2 billion. Olper's, our flagship brand, led the growth in the segment along with strengthening its market leadership position through consistent brand building and trade activities.
Olper's UHT continued to build reach of 'Happy Morning' campaign through TV, digital, social media & in-Store activities. The campaign establishes Olper's as an enabler of Happy Mornings for consumers by offering high-quality milk that is nutritious and delicious. These efforts helped drive Olper's household penetration and strengthened its Equity position within the Dairy Segment of Pakistan.
Our innovation Olper's Cheese has continued to grow in terms of volumes and distribution each month. The expansion of Olper's Cheese has been supported with communication across Digital, Radio, Out of Home, and integrations in Ramadan Cooking Shows and on famous YouTube channels. It has now become a strong favorite amongst consumers seeking high- quality nutritious and tasty Cheese.
Olper's Flavored Milk launched the campaign 'No Break in School Performance' in 2022, making the category relevant for children in the School Lunch Break occasion. Since then, the campaign has targeted consumers through key touchpoints including TV, Digital airing along with PR, Influencer Marketing campaigns, and activations that generate trials in schools. Olper's Flavored Milk has also been launched in a convenient weekly School Bundle pack. This was to further drive the Company's commitment to providing value propositions to its consumers. Building upon the momentum of last year Olper's Flavored Milk was also launched in a new innovative and refreshing flavor of Mango.
Our other brands like Olper's full cream milk powder (FCMP), Olper's Cream, and Tarang have also gained healthy market shares despite competition from established players.
FRIESLANDCAMPINA ENGRO PAKISTAN LIMITED
FIRST QUARTER ENDED 2023
FROZEN DESSERTS SEGMENT
The segment reported a revenue of Rs. 1,441 million, reflecting a growth of 19% versus same period last year. This growth has been enabled by the segment's planning & timely investment for opening the ice cream season.
The business continued to create excitement for consumers through the introduction of a new product Shahi Mango Stick. This new addition to the delicious portfolio represents a royal combination of juicy mangoes and crunchy almonds.
FINANCIAL PERFORMANCE
The financial performance of the company for the quarter ended March 31, 2023, is summarized below:
(Rs. in million)
Net Sales
Operating Profit
% of sales
Profit / (Loss) after tax
% of sales
Earnings / (Loss) per share (Rs.)
For the Quarter ended
March 31, 2023
2023 | 2022 |
22,651 13,971
1,982 1,184
8.8% 8.5%
990 664
4.4% 4.8%
1.29 0.87
Variation
62%
67%
+30 bps
-40 bps
FRIESLANDCAMPINA PARTNER WITH ENGRO EXIMP FZE
In line with FrieslandCampina's global purpose of nourishing by nature, FCEPL is partnering with Engro Eximp FZE to expand its global footprint and enter new markets. The agreement will increase Pakistan's dairy exports bringing in much needed foreign exchange to the country while enriching farmers' livelihoods.
FUTURE OUTLOOK
The Company's profitability will remain challenged due to rising inflation, foreign exchange constraints, currency devaluation, higher finance cost, and import constraints. However, with an agile business model in place, the management is confident that it will be able to drive efficiencies and continue to deliver growth.
Dairy farmers are the backbone of the Company's supply chain, and the Company will continue to scale up its industry-leading Dairy Development Program, which is designed to ensure inclusive growth and increased profitability for our farmers. The business will continue to train the farmers with best practices to help them improve productivity, yield, and profits thereby supporting and improving the communities we operate in. The Business will also continue to remain committed to improving farmers' livelihoods with women-focused initiatives by
FRIESLANDCAMPINA ENGRO PAKISTAN LIMITED
FIRST QUARTER ENDED 2023
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FrieslandCampina Engro Pakistan Ltd. published this content on 28 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2023 09:56:08 UTC.