FrieslandCampina Engro Pakistan Profit Increases by 28% in First 9 Months of 2024
FrieslandCampina Engro Pakistan Limited (FCEPL) has reported a significant financial growth in Quarter 3, 2024, with its profit after tax rising by 28 percent to Rs. 2 billion, up from Rs. 1.5 billion in the same period last year. The company also achieved a 12 percent increase in net sales, reaching Rs. 82 billion compared to Rs. 73.8 billion previously.
Despite the imposition of an 18 percent sales tax on UHT milk starting July 1, 2024, which previously had a zero-rated tax, the company has managed to mitigate the negative impact through an agile business model. This model has focused on cost efficiencies across the value chain, resulting in an improved gross margin by 60 basis points from last year. These efforts have led to a significant increase in the year-to-date profit after tax.
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Dairy-Based Products Segment
The dairy segment reported a revenue of Rs. 73.5 billion, reflecting a 12 percent growth from the previous year. This growth was driven by the flagship brand, Olper’s, which maintained a strong market presence in 2024 through the ‘Happy Mornings’ campaign. This campaign positioned Olper’s as a provider of high-quality, nutritious milk, strengthening its market share and brand equity.
Frozen Desserts Segment
The frozen desserts segment also performed well, showing an 11 percent growth compared to the previous year. Investments were made in the ‘Wow Bharay Deserts’ campaign, which aimed to broaden consumption occasions beyond traditional festivities.
Future Outlook
Looking ahead, FCEPL plans to continue adapting to market conditions and consumer demand pressures by offering relevant products and implementing cost rationalizations to enhance profitability and shareholder returns. The company is committed to advocating for a level playing field in the milk category, aiming to provide better nutrition to Pakistanis for generations to come. Leveraging its global expertise and heritage, FCEPL remains dedicated to maintaining high standards of hygiene, food safety, sustainability, and providing safe, affordable dairy products.
