Fauji Foods Limited (FFL) has announced its financial results for the quarter that ended on June 30, calendar year 2023.
The company has posted a profit of Rs. 22.27 million for 2QCY23 compared to a loss of Rs. 754.29 million reported in CY22.
For the half year, the company reduced its loss after tax by 88 percent to Rs. 145.31 million as compared to a loss of Rs. 1.2 billion recorded in the same period last year.
The company did not announce any bonus shares or cash dividends for the period in review.
According to FFL’s financial results, it registered a net revenue growth of 95 percent to Rs. 4.66 billion during 2QCY23 from Rs. 2.39 billion in CY22. With the first half revenue of Rs. 9.8 billion (+105 percent over SPLY) FFL sees the business all set to achieve a turnaround.
Deputy Head of Research at JS Global Waqas Ghani told ProPakistani,
In a brief commentary, FFL explained that Nurpur continues to drive growth (+51 percent SPLY). The strengthening of the brand has enabled Nurpur to navigate inflation through pricing.
FFL’s commercial sustainability is reflected through the improved structure of the PandL as Gross Margins increased from 3.7 percent in H1 2022 to 12.5 percent in H1 2023. As a result, FFL achieved an operating profit of Rs. 190 million in H1 vs. a loss of Rs. 708 million in SPLY. With a solid turnaround strategy delivering results, the EBIDTA surged to Rs. 448.4 million in H1, a 197 percent growth over 1HCY22.
The cost of revenue was reported at Rs. 4.09 billion in Q2 as compared to Rs. 2.38 billion last year. Meanwhile, the company’s gross profits skyrocketed to Rs. 0.56 billion from Rs. 0.09 billion in SPLY.
During the quarter, the finance cost of the company decreased by 89 percent to Rs. 35.5 million as compared to Rs. 332.7 million in the same period last year. In H1, the same metric saw a decrease of 40.7 percent to Rs. 335.3 million.
FFL’s marketing and distribution expenses increased by 2.2 percent to Rs. 349 million in Q2, while the same expenses saw a 2.7 percent increase to Rs. 695.9 million in January-June 2023.
Administrative expenses jumped to Rs. 157.4 million during Q2 and Rs. 344.1 million in H1. The company’s other income increased to Rs. 126.6 million as compared to Rs. 81.66 million in 1HCY22.
FFL reported a loss per share of Rs. 0.07 for the half year and earnings of Rs. 0.01 per share for 2QCY23.
The company’s scrip at the bourse was closed at Rs. 6.87, up by 1.03 percent or Rs. 0.07, with a turnover of 44.2 million shares on Friday.
Source: Pro Pakistani