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.