FrieslandCampina Engro Pakistan Ltd announces financial results for FY2023

KARACHI: FrieslandCampina Engro Pakistan Limited (FCEPL) announced its financial results for the year ended December 31, 2023.

The company continued its growth trajectory and delivered another record year with the highest-ever top line and operating profit.

This was in the face of a challenging macro-economic environment and intense competition. The company achieved a remarkable milestone, surpassing the Rs 100 billion top line mark with a 36 percent increase over last year.

The company witnessed a gross profit growth of 18 percent while gross margin declined by 218 bps due to high inflation, global supply chain disruption, foreign exchange constraints and currency devaluation.

However, operating margin declined by 115 bps over last year due to initiatives such as cost rationalization and efficiency building.

Profit after tax declined from PKR 2.5 billion to PKR 1.5 billion in the same period last year due to a significant increase in finance cost, with interest rates almost doubling over the year. Brand health indicators had a positive trajectory, setting the stage for long-term sustainable growth.

Dairy & Dairy-based Products Segment:

The segment reported revenue of Rs 91.68 billion, reflecting a growth of 38.3 percent compared to the previous year. Olper’s led this growth by strengthening its market leadership position through brand and trade investments. Olper’s UHT Milk, Olper’s Cream, Flavored Milk and Tarang all experienced a high double-digit revenue growth.

Olper’s UHT continued to maintain its presence on air with its “Happy Mornings” campaign across key touchpoints including TV, digital, social media, and in-store. In the last quarter, the brand launched the 1½ Pao Economy Pack, supported by an integrated marketing campaign across all relevant consumer touchpoints, establishing it as the ideal serving size for a single breakfast consumption occasion.

Olper’s flavored milk continued to drive presence on TV through it’s “No Break in Performance” campaign, encouraging milk consumption in children. It also launched Olper’s All Stars, an animated film driving engagement with children through a relatable and engaging medium.

Frozen Desserts Segment:

The segment reported revenue of Rs 8.56 billion, demonstrating a growth of 19.2 percent compared to the previous year. The brand strategically invested in season-opening activities and capitalized on various festivities. Additionally, the business-maintained consumer excitement by introducing three new innovations during the year.

Copyright Business Recorder, 2024