During nine months ended September 30, 2017, the management mentioned in its financial statement that the Company achieved a revenue of Rs27.1 billion as against to Rs33.9 billion
Engro Foods is the largest and fastest growing companies in Pakistan with a vision to attain the domestic demands with products conforming to worldwide standards. The company is highly passionate about offering millions of people across the length and breadth of the country and beyond with the ultimate brand experience.
Engro’s product portfolio consists some of the country’s biggest and best selling brands such as Olper’s, Olper’s Lite, Omore, Dairy Omung, Olper’s Lassi and Tarang. The company has come a long way since inception in 2005 when the management set out on an audacious mission to transform Pakistan’s dairy farming sector and cater to the needs of its rapidly enlarging local market. Presently, merely 9 years later, Engro Foods is proud to say that the management is leaders in the UHT segment in Pakistan and offering quality products with a vision to elevate consumer delight universal.
Over the last few years the company has aggressively enlarged its operations in selected markets and in such a short time span the company has cemented their place in these selected markets globally.
|FINANCIAL HIGHLIGHTS (Rs. in million)|
|Details||Nine months ended September, 30||Variation|
|% of sales||3.6%||12.3%|
|Profit after tax||386||2,595||(85%)|
|% of sales||1.4%||7.6%|
|Earnings per share (Rs.)||0.50||3.38||(85%)|
|Source: Engro Foods|
During nine months ended September 30, 2017, the management mentioned in its financial statement that the Company achieved a revenue of Rs27.1 billion as against to Rs33.9 billion in the corresponding period last year. The gross margin of Engro Foods fell from 25.4 percent to 17.1 percent. As a consequence, the overall profitability of the Company fell to Rs386 million from Rs2,595 million in the corresponding period previous year. Engro Foods recorded a profit of Rs200 million in the third quarter versus a loss of Rs145 million in the second quarter. Furthermore, dairy and beverages segment of the company recorded revenue of Rs24 billion versus Rs31 billion in the same period previous year. The dairy industry itself has seen a volume fall in 2017 on account of many challenges faced on multiple fronts. The disharmony between Federal and Provincial food laws and multiple food regulatory regimes has created compliance issues for the industry. Further, the undocumented and untaxed loose milk sector has created an uneven playing field for the processed industry.
The financial managers of the company also mentioned in the statement that growth also suffered greatly with the tax legislative changes proclaimed in the Federal Budget 2016, exempting dairy products and imposing additional duty on raw materials. Present management attempts are targeted towards driving loose milk conversion to fuel category growth despite the above issues, while employing other tactical measures to gain market share. Competition, chiefly in relation to the specialized tea creamer category has been heating up in the recent past with the entry of two key players. On the other hand ice cream and frozen desserts segment recorded revenue of Rs3.1 billion as against to Rs3.2 billion in the same period last year. A focus on giving new consumer experiences through delivering innovation along with an efficient communication strategy focusing on the mother brand drove the segment’s performance during the period under review. This segment also registered a profit of Rs156 million as compared to profit of Rs203 million in the same period previous year, which is lower because of one-off charges without which, the underlying profit after tax has improved by 9 percent as against the same period last year. The company also mentioned that the dairy farm segment posted a profit of Rs38 million as compared to a loss of Rs66 million in the same period previous year on the back of being a high yielding, consistent and high quality source of raw material for the Company.
|INFLATION IN PAKISTAN (Base 2007-08)|
|Index||Averages July-November % Changes|
The Pakistan Bureau of Statistics (PBS) mentioned in its present report that CPI inflation grew by 4.6 percent on yearly basis in December 2017 as against to a rise of 4.0 percent in the last month and 3.7 percent in December 2016. On month-on-month basis, it declined by 0.1 percent in December 2017 as against to a rise of 0.4 percent in the last month and decline of 0.7 percent in December 2016. PBS recorded few commodities which increased in December 2017 from previous month are chicken (23.67%), betel leaves & nuts (4.67%), dry fruits (1.76%), rice (1.18%) and wheat (1.09%). PBS also recorded few commodities which decreased in December 2017 from previous month are tomatoes (30.16%), onion (21.91%), pulse mash (3.83%), fresh vegetables (3.83%), pulse moong (3.24%), pulse masoor (2.75%), eggs (2.73%) and pulse gram (1.66%). On yearly basis top few commodities which increased from previous year i.e. December 2016 are onion (130.36%), tomatoes (49.35%), potatoes (21.52%), chicken (21.21%), betel leaves & nuts (16.18%), rice (15.12%), fresh vegetables (12.04%), meat (7.69%), tea (7.59%), honey (6.90%), fresh fruits (6.58%) and readymade food (6.38%).furthermore, yearly decreased products are pulse gram (28.85%), pulse mash (27.41%), pulse moong (21.19%), pulse masoor (20.68%), besan (20.25%), cigarettes (18.47%) sugar (13.45%) and gram whole (7.64%).