Big Bird Foods Ltd. Increases Revenues and Expands Production Capacity

Karachi: Big Bird Foods Ltd. (BBFL) reported a significant rise in its revenues and outlined its strategic plans for future expansion during its analyst briefing for the first half of fiscal year 2025. The company achieved a topline of PKR 4.8 billion, marking a 23% increase from the previous year, driven by a similar rise in sales volumes.

According to a statement by AKD Securities Limited, BBFL maintained gross margins at 21.7%, attributing this stability to its capacity to adjust customer pricing in response to changes in raw material costs. The company operates at 30% capacity utilization, with management optimistic about increasing this rate without additional capital expenditures, provided there is adequate working capital.

BBFL’s revenue is largely derived from two segments: primary processed chicken products and further processed chicken products, contributing 75% and 25% respectively. The company has notably reduced its dependency on major corporate clients like KFC and McDonald’s, which now account for 28% of sales, down from 51% in the previous fiscal quarter.

The company is prioritizing growth in the retail sector, which offers higher profit margins compared to business-to-business clients. In line with this strategy, BBFL has increased its capacity in the ethnic food segment from 120 tons to 175 tons, expecting this to add PKR 500 million annually to its topline.

Additionally, BBFL has ventured into the seafood market, a move that has been positively received by consumers. The company is also focused on reducing its debt, having recently repaid PKR 559 million to financial institutions.

Currently exporting to markets such as Qatar, Oman, Saudi Arabia, and Hong Kong, BBFL is actively seeking to broaden its international footprint, aiming to enhance its export revenues.

The post Big Bird Foods Ltd. Increases Revenues and Expands Production Capacity appeared first on Pakistan Business News.