Friesland Campina Engro Pakistan Limited (FCEPL) announced its financial results for the year ended December 31, 2022. Building upon the growth trajectory, FCEPL delivered another record year with highest ever topline and operating profit of PKR 73.5 Billion and PKR 5.3 Billion respectively. The topline grew by 41% over last year driven by volume growth, mix improvement and expansion of the retail footprint despite aggressive competition and distribution challenges.
The Company witnessed gross profit growth of 37% while the gross margin declined by 50bps due to higher commodity prices, global geo-political environment, foreign exchange constraints, Rupee devaluation and floods. While the gross margin has declined, the operating margin improved by 60bps over last year due to initiatives such as cost rationalization and driving efficiencies across the value chain.
Profit After Tax grew by 37% despite higher interest rates and imposition of super tax.
School Milk Program
Keeping in view the Company’s purpose of nourishing Pakistan, the Company collaborated with University of Education and University of Veterinary & Animal Sciences to gauge the health benefits of daily milk consumption on children. For this purpose, School Milk Program (SMP) was conducted by providing milk to 8000+ children in 89 primary schools in Attock and Sheikhupura. The program generated encouraging research-based evidence that highlights the need to develop a policy for providing milk in schools at a national level to improve the status of nutrition in Pakistan.
Dairy and Beverages Segment:
The segment reported a revenue of PKR 66.3 billion, reflecting a growth of 41% versus last year. Olper’s led the growth in the segment by strengthening its market leadership position through brand and trade investments. Olper’s UHT Milk, Olpers Cream, Dobala, Flavoured Milk and Tarang all posted a double¬ digit growth
The segment deployed various physical availability initiatives along with capitalizing on category captaincy in the Modern Trade channel. Through targeted consumer promotions, investment in trade activations and consumer engagement, FCEPL’s retail footprint expanded by 4500+ outlets. The Company accelerated its profitable growth by driving its Value-Added Brands in the market.
Ice cream and Frozen Desserts Segment
The segment reported a revenue of Rs. 7.18 billion, reflecting a growth of 37% versus last year. The business invested in season ¬opening activities and capitalized on all festivities through best-¬in-¬class service and expansion of the trade universe by inducting more assets in the market.
