FFL achieved a remarkable milestone in 1HCY23, reporting its highest sales of PKR 9.837 billion, which marked a substantial 105% year-on-year growth since 2016, compared to PKR 4.797 billion in 1HCY22.
In 2QCY23, the sales continued to soar, increasing by an impressive 95% (PKR 4.669 billion) compared to PKR 2.394 billion in the same period last year.
The Company witnessed outstanding growth in the topline, amounting to PKR 1.231 billion (LPS: PKR 0.07) in 1HCY23, compared to PKR 179 million (LPS: PKR 0.79) in
Moreover, the company managed to significantly reduce its net losses to PKR 147 million in 1HCY23, a considerable improvement from PKR 1.254 billion in the corresponding
period of the previous year (SPLY).
During 2QCY23, FFL achieved a remarkable turnaround, reporting a net income of PKR 22.271 million, a substantial 103.96% increase YoY, compared to a net loss of PKR 754
million during the same period last year.
FFL reported a positive EBITDA of PKR 448 million in 1HCY23, a notable improvement from a negative EBITDA of PKR 465 million in the previous year.
The company experienced a total value growth of 10% in 1HCY23, driven by the strong performance of UHT (24%), butter (25%), cream (113%), cheese (44%), and EM (59%), with only a minor decline of 11% in LTW.
FFL’s distribution network increased to 33,000 outlets in June 2023, up from 18,000 outlets in 4QCY21, fueling the company’s growth.
Additionally, FFL made efforts to reduce its energy costs by shifting from coal to biomass as a source of energy. This transition combined with process optimization and packaging efficiencies is expected to result in savings of PKR 1 billion in CY23.
Furthermore, the company has managed to clear its total debt of PKR 8 billion through an equity injection of PKR 11 billion, making it debt-free.
The economic scenario, including recent devaluation, has led to growing demand for FFL products due to increased import substitution in the country.
Moreover, FFL made significant improvements in receivables, achieving a 54% improvement in 2QCY23, and currently maintains a 45-day cash operating cycle.
Looking ahead, the company has ambitious goals and aims to become a PKR 100 billion company in Pakistan by focusing on accretive growth, expanding its value-added portfolio, and optimizing capabilities.
The Company expects the current inflationary pressure will continue to impact the prices of the products in future.
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