Lahore October 23 2024: Fauji Foods Limited targets to become a PKR 100 billion company with investment in brands and expansion in cereal business.
“Looking ahead, the investment in brands and distribution and high margin Cereals portfolio should continue to fuel the growth and deliver improved financial performance” states company in its filing to Pakistan Stock Exchange.
“Pasta launch later in the year will further strengthen the culinary credentials of the portfolio extending it beyond the breakfast table” the note added
“We are confident that FFL, driven by its vision of “Unleashing Pakistan’s promise in everything we touch”, is on its path to achieve the goal of becoming a 100 bn business” states the company.
FFL reported a PAT of PKR 223 Mn in Q3 2024 vs PKR 39 Mn SPLY (+478%) & PKR 560 Mn for 9 months of 2024 vs loss of PKR (109) Mn SPLY (+615% ). The business has continued its growth momentum, recording a YTD revenue of PKR 17.85 bn (+20% vs SPLY). The three strategic pillars of a) Margin Accretive Growth b) COGS reduction and c) Capability, continued to drive topline as well as bottom-line.
Nurpur UHT milk remains the fastest growing Milk brand in Pakistan. It recorded 47% revenue growth in the 9 months of 2024 vs SPLY. The strategic acquisition of cereal business in Feb 2024 helped diversify the portfolio and allows the business to own the breakfast table.
The commercial sustainability is reflected through the improved structure of the P&L as Gross Margins increased from 11.9% in Q3 2023 to 14.8% in Q3 2024, while the 9-month Gross Margin increased by 5% vs SPLY to hit 18%. This was driven by continued focus on cost efficiencies backed by continuous improvement in the Supply Chain. As a result, FFL achieved Q3 2024 operating profit of PKR 236 Mn vs PKR 68 Mn in SPLY.
The company is on its journey to build world class capability across the organization. The First Management Trainee Program concluded this year and there are plans to broaden the scope in future. Additionally, the digitization agenda is being driven across the businesses to harness insights for growth and efficiency.
