Contents
company information 2
directors' report 4
condensed interim statement of financial position 8
condensed interim statement of profit or loss 9
condensed interim statement of comprehensive income 10
condensed interim statement of changes in equity 11
condensed interim statement of cash flows 12
notes to the condensed interim financial statements 13
directors' report (Urdu version) 20
Company information
Board of Directors
Abdul Samad Dawood (Chairman) Ali Ahmed Khan (CEO)
Abrar Hasan
Eduardus Lambertus Holtzer Petra Attje Zinkweg
Roeland Francois Van Neerbos Zouhair Abdul Khaliq
Auditors
A. F. Ferguson & Company Chartered Accountants
State Life Building No. 1-C I.I. Chundrigar Road Karachi - 74000, Pakistan.
Tel: +92(21) 32426682-6 / 32426711-5
Chief Financial Officer
Imran Husain
Company Secretary
Muneeza Iftikar
Members of Audit Committee
Abrar Hasan (Chairman)
Eduardus Lambertus Holtzer Zouhair Abdul Khaliq
The secretary of committee is
Saleem Lallany, GM Internal Audit Department
Bankers
Conventional Allied Bank Limited Askari Bank Limited Bank Al-Falah Limited Bank Al-Habib Limited Citibank N.A.
Faysal Bank Limited Habib Bank Limited
Habib Metropolitan Bank Limited MCB Bank Limited
National Bank of Pakistan Samba Bank Limited
Standard Chartered Bank Pakistan Limited Summit Bank Limited
United Bank Limited The Bank of Punjab
Shariah Compliant Meezan Bank Limited
Bank Al-Habib Limited - Islamic Banking
Share Registrar
M/s FAMCO Associates (Private) Limited 8-F Next to Hotel Faran, Block-6 PECHS, Shahrah-e-Faisal, Karachi - Pakistan Tel: +92 (21) 34380104-5, 34384621-3 Fax: +92 (21) 34380106
Registered Office
5th Floor, The Harbor Front Building HC-3, Marine Drive, Block - 4, Clifton Karachi - 75600, Pakistan.
Tel: +92 (21) 35296000 (9 lines) Fax: +92 (21) 35296010
E-mail:efl.shareholders@frieslandcampina.comWebsite:www.frieslandcampina.com.pk
DIRECTORS' REPORT
On behalf of the Board of Directors of FrieslandCampina Engro Pakistan Limited (a majority owned subsidiary of FrieslandCampina Pakistan Holdings B.V.), we are pleased to submit the report and the condensed financial information of the Company for the three months ended March 31, 2022.
FRIESLANDCAMPINA ENGRO PAKISTAN JOINS HANDS WITH UNIVERSITY OF VETERINARY AND ANIMAL SCIENCES (UVAS) TO ESTABLISH "PAKISTAN-NETHERLANDS DAIRY DEVELOPMENT CENTER" (PNDDC)
The Company aims to provide platform that will revolutionize the landscape of dairy in the world's 4th largest milk producing country; unlocking dairy development expertise for all core stakeholders through the sharing of rich Dutch dairy expertise.
The PNDDC will contribute to the improvement of production, food security, quality, food-safety, and sustainability throughout the dairy value chain of the Pakistan dairy sector.
Moreover, PNDDC would also commence exchange programs, incorporating knowledge and expertise from Netherlands, through arranging expert missions and Farmer2Farmer missions - Dutch farmers and experts would visit Pakistan for guidance and hands-on assistance of local farmers, meanwhile Pakistani farmers will visit Netherlands for hands-on training. The center would also manage deployment of academic talent (research sponsorship for Pakistani students) at the Netherlands or the countries with comparable challenges & opportunities as Pakistan.
BUSINESS OVERVIEW
The Company continues to record double digit growth with revenue reaching Rs 14 billion in the first three months reflecting 20.7% growth versus last year. The growth was fueled by improvement in mix along with increase in volumes in both Dairy & Beverages segment and Ice Cream & Frozen Desserts segment.
With inflation reaching 12.7% (PBS report for March) and devaluation of Pakistan Rupee (3.8% as per SBP since start of the year) the business environment remained challenging. As a result, the gross margins reduced by 140bps. However, through delivery of efficiencies in distribution and fixed cost, profit after tax improved by 10bps (profit after tax of Rs. 664 million in 2022 vs Rs. 547 million in 2021).
DAIRY AND BEVERAGES SEGMENT
With a growth of 19.5% versus last year, the segment reported a revenue of Rs. 12.8 billion. Olper's led the growth in the segment along with strengthening its market leadership position through brand and trade investments.
Significant expansion was witnessed in the retail footprint and E-Commerce channel during the quarter. The segment will continue to explore new channels and route to markets to serve its customers effectively and efficiently.
In 2022, new campaign on Olper's under the "Olpers Happy Mornings" theme went on air which aimed at further strengthening the brands equity and driving conversion from loose milk. The campaign featured a fresh perspective on milk sourcing by showcasing how our well-cared-for cows and buffaloes provide more nourishing, delicious and creamy milk, enabling happy mornings for families across Pakistan.
Morning is a key occasion for dairy in Pakistan. To drive penetration of Olper's in the morning occasion and leverage on this huge opportunity of dairy food occasions, Olper's Cheese has been launched recently.
FrieslandCampina Engro Pakistan Limited
First Quarter ended 2022
Every slice of Cheese (20g) provides nutrition of one glass of Olper's Milk (200ml) and hence continues to drive the brand message of Nutrition. The business's other recent launches like Olper's Flavored Milk, Olper's full cream milk powder (FCMP), Olper's Pro-Cal, Olper's Cream and Tarang Elaichi have gained a healthy market share in a short span of time despite strong competition from established players.
The Company continues to leverage FrieslandCampina's global expertise to introduce new products and innovations as a key driver of future business growth.
ICE CREAM AND FROZEN DESSERTS SEGMENT
With a growth of 34.1% versus last year, the segment reported a revenue of Rs. 1.2 billion. This growth has been enabled by segment's investment behind season opening activities and expansion of the trade universe by inducting more assets in the market.
To give consumers an experience of a value-added product at an accessible price, the Omore Double Choco Chips Cone has been launched in 2022. A dual chocolate flavoured product with chocolate sauce and chocolate chips is an irresistible offer available for just Rs. 50.
Omore signature thematic campaign "Wow Bhara Bite" continues to be on air and is the perfect expression of what Omore stands for as a brand - the purveyors of tasty, creamy treats in a wide variety of formats, which can be enjoyed by people of all ages - from kids & youth to adults.
FINANCIAL PERFORMANCE
The financial performance of the company for the three months ended March 31, 2022 is summarized below:
(Rs. in million)
Three Months ended March 31, 2022 | Variation |
2022 | 2021 |
Net Sales 13,971 11,577 20.7%
Operating Profit % of sales
1,184 964 22.9%
Profit / (Loss) after tax % of sales
8.5% 8.3% 664 547 4.8% 4.7%
20 bps 10 bps
Earnings / (Loss) per share (Rs.)
0.87 0.71
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FrieslandCampina Engro Pakistan Ltd. published this content on 28 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 April 2022 08:04:06 UTC.