AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: FrieslandCampina Engro Pakistan Limited announced its financial outcomes for the nine months ended September 30, 2024, marking a significant rise in profits compared to the previous year. According to the unaudited financial statement released after a board meeting on October 17, 2024, the company recorded a profit of PKR 2.02 billion, a considerable increase from PKR 1.58 billion in 2023.
During the reported period, the company generated a revenue of PKR 82.51 billion, up from PKR 73.82 billion in the previous year, showcasing a robust growth in sales despite challenging market conditions. The increase in revenue is attributed to heightened efficiency in operations and an expansion in customer contracts.
Cost of sales stood at PKR 68.81 billion, showing a slight increase from last year’s PKR 62.03 billion. However, the gross profit surged to PKR 13.70 billion from PKR 11.79 billion, thanks to effective cost management strategies and enhanced production techniques.
Operating expenses saw a mixed trend. Distribution and marketing expenses were almost flat at PKR 6.30 billion compared to PKR 5.63 billion last year, while administrative expenses rose marginally from PKR 1.35 billion to PKR 1.38 billion. Other operating expenses slightly decreased to PKR 386.59 million from PKR 430.94 million.
According to information available from the Pakistan Stock Exchange (PSX), the other income for the company also saw a reduction to PKR 306.59 million from the previous year’s PKR 936.27 million. Despite this, the overall operating profit improved significantly to PKR 5.94 billion, up from PKR 5.32 billion, largely driven by better revenue management and cost efficiencies.
Finance costs, which include interests and other charges, decreased to PKR 2.72 billion from PKR 2.29 billion, positively impacting the profit margins. Profit before taxation stood at PKR 3.22 billion, compared to PKR 3.02 billion in the prior year.
The tax expenses were recorded at PKR 1.20 billion, slightly lower than the PKR 1.45 billion seen last year, culminating in a net profit for the period of PKR 2.02 billion. The earnings per share also rose to PKR 2.63 from PKR 2.06, indicating a healthy return for shareholders.
Despite these strong financial metrics, the Board of Directors decided against issuing any final cash dividend or bonus/right shares for the period, opting to reinvest the profits for further business growth and expansion.
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