FRIESLANDCAMPINA ENGRO PAKISTAN LIMITED THIRD QUARTER 2022
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 |
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Company information
Board of Directors | Auditors |
Abdul Samad Dawood (Chairman) | A. F. Ferguson & Company |
Ali Ahmed Khan (CEO) | Chartered Accountants |
Abrar Hasan | |
Eduardus Lambertus Holtzer | State Life Building No. 1-C |
Petra Attje Zinkweg | I.I. Chundrigar Road |
Roeland Francois Van Neerbos | Karachi - 74000, Pakistan. |
Zouhair Abdul Khaliq | Tel: +92(21) 32426682-6 /32426711-5 |
Chief Financial Officer | Share Registrar |
Imran Husain | M/s FAMCO Associates (Private) Limited |
8-F Next to Hotel Faran, Block-6 PECHS, | |
Company Secretary | Shahrah-e-Faisal, Karachi - Pakistan |
Muneeza Iftikar | Tel: +92 (21) 34380104-5,34384621-3 |
Fax: +92 (21) 34380106 | |
Members of Audit Committee | |
Abrar Hasan (Chairman) | Registered Office |
Eduardus Lambertus Holtzer | 5th Floor, The Harbor Front Building |
Zouhair Abdul Khaliq | HC-3, Marine Drive, Block - 4, Clifton |
Karachi - 75600, Pakistan. | |
The secretary of committee is | Tel: +92 (21) 35296000 (9 lines) |
Saleem Lallany, GM Internal Audit Department | Fax: +92 (21) 35296010 |
E-mail: efl.shareholders@frieslandcampina.com | |
Bankers | Website: www.frieslandcampina.com.pk |
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 | |
United Bank Limited | |
The Bank of Punjab | |
Shariah Compliant | |
Meezan Bank Limited |
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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 nine months ended September 30, 2022.
FLOOD RELIEF ACTIVITIES CARRIED OUT BY FRIESLANDCAMPINA ENGRO PAKISTAN LIMITED (FCEPL)
In light of the recent floods in Pakistan which displaced over 33million Pakistanis, FCEPL undertook flood relief efforts to support the affectees in Sindh and Balochistan with food, shelter, and free animal treatment camps. Working closely with the District Administrations and local government authorities, the Company donated 3000+ ration bags, 100 tents, and 11,000+ litres of Olper's milk, serving 15,000+ people and medically treating 12,000+ animals in Sukkur, Khairpur, Nara, Larkana, Dadu, and Sanghar.
FCEPL also partnered with Roshan Pakistan Academy (RPA) for flood relief in Balochistan. The Company donated dairy-based products - Olper's Full Cream Milk Powder equivalent to ~8,000 glasses of milk - to the ration packs being distributed by RPA to the affected areas. Additionally, FCEPL organized a voluntary donation drive inviting employees to generate more funds and scale the impact of relief efforts. Driven by its purpose of Nourishing Pakistan, FCEPL continues to stand with the people of Pakistan.
FCEPL partnered with the World Wide Fund for Nature (WWF-Pakistan) on a tree plantation initiative to increase local resilience to climate change. Under the partnership, FCEPL team planted mangroves at the WWF Wetland Center in Karachi and undertook a plantation drive with employees and community members at Nara farm.
BUSINESS OVERVIEW
FrieslandCampina Engro Pakistan Limited delivered a topline growth of 37% and reported a revenue of PKR 52,827 million against PKR 38,671 million in the same period last year on the back of volume growth, mix improvement, and distribution expansion. Accordingly, operating profit reflected a growth of PKR 500 million vs last year. However, the business witnessed a decline in profit after tax of Rs 194 million vs last year (Rs 1,765 million vs Rs 1,959 million) on the back of higher finance cost due to an increase in interest rates and higher taxation due to the imposition of Super Tax.
Significant expansion was witnessed in the retail footprint and E-Commerce channel during the three quarters. The business has also improved its market reach, increased marketing spending to enhance brand equity, and improved its market penetration.
DAIRY-BASED PRODUCTS SEGMENT
With a growth of 36.4% versus last year, the segment reported a revenue of Rs. 46.1 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.
Significant expansion was witnessed in the retail footprint and E-Commerce channel during the quarter. The segment will continue to explore new channels and routes to markets to serve its customers effectively and efficiently.
Olper's UHT continued to maintain a presence on air with its new 'Happy Mornings' campaign across key touchpoints including TV, Digital, Social Media & In-store. The new campaign has strengthened Olper's brand equity and resulted in accelerating conversion from loose milk. The campaign establishes Olper's
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as an enabler of Happy Mornings for consumers by offering high-quality milk that is nutritious, delicious, and creamy.
We continue to leverage FrieslandCampina's global expertise to introduce new products and innovations as a key driver of future business growth. Morning is a key occasion for dairy in Pakistan as around 62% of Pakistanis have breakfast daily. To drive the penetration of Olper's in the morning occasion and leverage on this huge opportunity of dairy food occasions, Olper's Cheese was recently launched. Every slice of Cheese (~20g) provides the nutrition of one glass of Olper's Milk (~200ml).
With the start of school year in August 2022, Olper's Flavoured Milk launched its new campaign 'No Break In School Performance'. The campaign targeted consumers through key touchpoints with TV, Digital airing along with PR & activation. Olper's Flavoured Milk has also been launched in a convenient 6x110ml positioned as a weekly School Bundle pack.
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.
FROZEN DESSERTS SEGMENT
With a growth of 37.9% versus last year, the segment reported a revenue of Rs. 6.8 billion. This growth has been enabled by the segment's investment in season-opening activities and expansion of the trade universe by inducting more assets in the market.
To give consumers an experience of a value-added offering, a dual chocolate flavored product with chocolate sauce and chocolate chips, the Omore Double Choco Chips Cone has been launched at an accessible price point in 2022.
FINANCIAL PERFORMANCE
The financial performance of the company for the nine months ended September 30, 2022, is summarized below:
Nine Months ended | |||
September 30, 2022 | |||
(Rs. in million) | 2022 | 2021 | Variation |
Net Sales | 52,827 | 38,671 | 36.6% |
Operating Profit | 3,874 | 3,374 | 14.8% |
% of sales | 7.3% | 8.7% | -140 bps |
Profit / (Loss) after tax | 1,765 | 1,959 | |
% of sales | 3.3% | 5.1% | -180 bps |
Earnings / (Loss) per share | 2.30 | 2.56 | |
(Rs.) | |||
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FrieslandCampina Engro Pakistan Ltd. published this content on 28 October 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 October 2022 05:42:01 UTC.
