Contents
Company information | 1 |
directors' report | 2 |
auditors' report to the members on review of condensed interim financial information | 5 |
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) | 22 |
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 (resigned on Aug 11, 2023) Mr. Hassan Azwar (w.e.f. Aug 11, 2023)
Members of Audit Committee
Mr. Abrar Hasan (Chairman)
Mr. Robert ter Borg (Member)
Mr. Zouhair Abdul Khaliq (Member)
The secretary of committee is
Ms. Maria Umer Memon, GM Internal Audit Department
Bankers
Conventional
Allied Bank Limited
Askari Bank Limited
Bank Al-Falah Limited
Bank Al-Habib Limited
Citibank N.A.
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 Micro Finance Bank Limited
United Bank Limited
Bank of Punjab
Shariah Compliant
Meezan Bank Limited
Faysal 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 (10 lines)
Fax: +92 (21) 35295961-2
E-mail: efl.shareholders@frieslandcampina.com
Website: www.frieslandcampina.com.pk
DIRECTORS' REPORT
The Directors of FrieslandCampina Engro Pakistan Limited (a majority-owned subsidiary of FrieslandCampina Pakistan Holdings B.V.) (the "Company"), are pleased to submit the report along with the condensed interim financial statements of the Company for the six months ended June 30, 2023.
BUSINESS PERFORMANCE OVERVIEW
Despite challenging operating environment and economic slowdown, the Company delivered strong double-digit growth of 53% (revenue of PKR 47.0 billion against PKR 30.8 billion in the same period last year) fueled by volume growth, favorable portfolio mix, pricing management initiatives and distribution expansion supported by uninterrupted supplies from our agile supply chain.
The Company witnessed gross profit growth of 48% while the gross margin declined by 49 bps due to high inflation, increase in energy prices, global geo-political environment, foreign exchange constraints, and significant currency devaluation. While the gross margin has declined, the operating margin improved by 80bps over last year due to initiatives such as cost rationalization and driving efficiencies across the value chain.
However, the profit after tax (PKR 1.3 billion vs PKR 0.9 billion same period last year) as a percentage of sales declined by 23 bps due to a significant increase in finance cost and taxation.
DAIRY-BASED PRODUCTS SEGMENT
The segment reported a revenue of PKR 41.6 billion, reflecting a growth of 57% versus the same period last year. Olper's, our flagship brand, led the growth in the segment by strengthening its market leadership position through consistent brand and trade investments.
Olper's UHT continued to build the reach of 'Happy Mornings' 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.
Olper's flavored Milk campaign 'No Break in School Performance' launched in 2022 continued to make the category relevant for children in the school lunch break occasion the campaign continues to target consumers through key touchpoints including TV, Digital
FRIESLANDCAMPINA ENGRO PAKISTAN LIMITED | 02 |
HALF YEAR ENDED JUNE 2023 |
airing along with PR, Influencer Marketing campaigns, and activations which generates trial in schools. Olper's Flavored Milk continued to drive relevance among kids through brain-stimulating exercises in print and distribution of creative and mental exercise books in schools. Olper's Flavored Milk has also launched 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 innovating and refreshing flavor of Mango.
Our other brands like Olper's full cream milk powder (FCMP), Olper's Cream, Tarang have also gained healthy market shares despite competition from established players.
FROZEN DESSERTS SEGMENT
The segment reported a revenue of PKR 5.4 billion, reflecting a growth of 25% versus the same period last year. This growth has been enabled by the segment's planning and timely investment of Eid and season opening occasions.
The business continues to create excitement for consumers through the launch of innovation: Shahi Mango Stick, Mango Crush and Candy Pop stick.
FINANCIAL PERFORMANCE
The financial performance of the company for the half year ended June 30, 2023, is summarized below:
(PKR in million)
Net Sales
Operating Profit
- of sales Profit after tax
- of sales
Earnings per share (Rs.)
Half year ended | Variation | |
June 30, 2023 | ||
2023 | 2022 | |
47,015 | 30,771 | 53% |
3,873 | 2,290 | 69% |
8.2% | 7.4% | +80 bps |
1,326 | 938 | |
2.82% | 3.05% | -23 bps |
1.73 1.22
FRIESLANDCAMPINA PARTNERS WITH NEDAP
FrieslandCampina Engro Pakistan Limited (FCEPL) and NEDAP, a multinational technology company in the Netherlands, join forces to harness the huge potential of Pakistani dairy sector with the aim of boosting operational efficiency of dairy farms and farmers' income while increasing access to high quality and affordable dairy products for the Pakistani consumer.
FRIESLANDCAMPINA ENGRO PAKISTAN LIMITED | 03 |
HALF YEAR ENDED JUNE 2023 |
Attention: This is an excerpt of the original content. To continue reading it, access the original document here. |
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
FrieslandCampina Engro Pakistan Ltd. published this content on 30 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 August 2023 07:23:06 UTC.