Karachi February 28 2023: National Foods Limited (NATF) profit plunged 46 percent in first half of fiscal year 2023 on rising finance cost and super tax, according to company filing to the exchange.
Share price of the company dropped 31.23 percent in a period of one year to trade below level of 100 rupees at Pakistan Stock Exchange.
“Our business has managed to maintain its topline with a 2 percent upside on the core business front. Gross margins improved by 250bps, mainly a result of pricing and cost optimization project initiated in the organization” says Company Chairman Zahid Majeed.
Zahid added, “Operating Profit registered a 13 percent decline mainly an impact of increase in indirect overheads. Impact of super tax coupled with rising finance cost impacted net profitability which went down by 46 percent.”
“International business remained strained as a consequence of a sharp global downtrend in overall consumption and demand” Zahid says.
Net sales grew by 71 percent mainly in Packaging, Groceries, Beverage and Wares category, with inflation now slowing down in Canada. The business has shown remarkable growth in its profitability with the Operating Profit up by 107 percent and Net Profitability increasing by 111 percent says Company Chief Officer Abrar Hasan.
The Chairman thinks the ongoing worldwide trends has had a surging impact on the country’s economy which has further aggravated due to the present political turmoil. The import restriction has had led to sustainability issues for various local manufacturing sectors resulting in multiple stoppages and exorbitant costs. The management will continue to closely monitor the situation and strategize accordingly to drive business fundamentals and maintain its market leadership position in all major categories through contingency planning.
National Foods Limited was incorporated in Pakistan on 19 February 1970 as a private limited company under the Companies Act, 1913 and subsequently converted into a public limited company under the repealed Companies Ordinance, 1984 (now Companies Act, 2017). The Company is principally engaged in the manufacture and sale of convenience based food products. The ultimate parent entity of the Company is ATC Holdings (Private) Limited.
