Fauji Foods Posts Rs. 656 Million Profit in 2024

Fauji Foods Limited (PSX: FFL) has posted a Rs. 656 million profit after tax (PAT) for the calendar year ended on December 31, 2024, up 8 percent compared to a PAT of Rs. 605 million 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 21 percent to Rs. 23.4 billion during CY24 from Rs. 19.3 billion in CY23. In a brief commentary, FFL explained that Nurpur UHT milk remains the fastest growing Milk brand in Pakistan. It recorded 45 percent revenue and 29 percent volume growth vs SPLY. In line with the strategy of entering Margin Accretive segments, cereals were acquired in February 2024 and Opa Pasta launched in Q4 2024. With these additions, Fauji Foods has a food culinary portfolio spread across multiple culinary occasions. FFL said the commercial sustainability is reflected through the improved structure of the P&L as Gross Margins increased from 13.1 percent in 2023 to 15.8 percent in 2024, an increase of 2.7 percent. This was driven by a continued focus on cost efficiencies backed by improvement in the Supply Chain. As a result, FFL achieved a full-year 2024 operating profit of Rs. 1.02 billion vs Rs. 0.41 billion in 2023, an increase of 150 percent. The business shall continue to benefit from synergies arising from consolidating operations between cereals, dairy and Pasta. During the calendar year, the finance cost of the company decreased by 83 percent to Rs. 54.6 million as compared to Rs. 323.8 million in the same period last year. FFL’s marketing and distribution expenses increased by 29 percent to Rs. 1.7 billion in CY24 compared to Rs. 1.32 billion in 2023. Administrative expenses jumped to Rs. 940 million during CY24. The company’s other income increased by 129 percent to Rs. 546 million during the period in review. The company added that with the commercial strategy delivering results, EBIDTA, which has been on a growth path, closed at Rs. 1.7 billion in 2024 from an EBITDA of Rs. 1.09 billion, an increase of 56 percent over SPLY. FFL reported earnings per share of Rs. 0.26 for the calendar year, the same as 2023. At the time of filing, the company’s scrip at the bourse was at Rs. 15.58, down by 4.36 percent or Rs. 0.71, with a turnover of 26 million shares on Tuesday.