Hifsa Raja

Fauji Foods Limited’s gross profit stood at Rs282 million in the first nine months of 2022 compared to Rs813 million in the corresponding period of the previous year, posting a 65% decrease year-on-year. The company’s loss from operations jumped to Rs1.06 billion in 9MCY22 from Rs203 million in the corresponding period of CY21, posting 425% growth in loss year-on-year.

Similarly, the company’s loss before taxation increased to Rs1.84 billion in 9MCY22 from Rs1.09 billion in the corresponding period of CY21. Likewise, the loss after taxation increased 63% to Rs1.94 billion in 9MCY22 from Rs1.19 billion loss over the corresponding period of CY21, reports WealthPK.

The company’s earnings per share have been in the negative territory since 2018, showing the company is suffering losses.

Fauji Foods has suffered losses over the last five years compared to the overall industry performance.

The company’s gross profit, net profit and earnings per share margins improved in 2021.

Performance in 2021

During 2021, the company’s gross profit stood at Rs921 million over Rs62 million in 2020, showing a mammoth 1379% growth year-on-year. However, the company’s profit before taxation decreased to Rs1.53 billion in 2021 from over Rs3 billion in 2020, showing a 50% decrease.  The profit after taxation for CY21 stood at Rs1.25 billion, down 59% from Rs3 billion in CY20.

Fauji Foods Limited is a subsidiary of Fauji Fertilizer Bin Qasim Limited. It is engaged in the processing and sale of toned milk, milk powder, fruit juices, allied dairy and food products.

Credit : Independent News Pakistan-WealthPk