Qudsia Bano

National Foods Limited’s revenue from sales decreased 4% to Rs5.6 billion in the first quarter of the ongoing financial year 2022-23 (1QFY23) from Rs5.8 billion in the corresponding period of the previous fiscal. The gross profit of the company also decreased 4% to Rs1.9 billion in 1QFY23 from Rs2 billion recorded in 1QFY22.

The company posted a net profit of Rs268.4 million in 1QFY23 compared to a profit of Rs544.7 million over the corresponding period of FY22, showing a negative growth of 51% year-on-year. The first quarter of the fiscal year saw little improvement in the macroeconomic environment. Economic growth was slowed down by a protracted commodity supercycle, current account deficit, interest rates, and forex pressure. Despite a slight decrease in the past months, inflation is still fairly high and is further exacerbated by the high cost of food imports due to flood damage, reports WealthPK.

During the fiscal year 2021-22, the company’s gross sales soared to Rs26.8 billion from Rs23.1 billion in FY21, posting an increase of 16% year-on-year. The gross profit for FY22 stood at Rs8.97 billion, 27% up from Rs7 billion in FY21. The profit-after-tax for the year went up by 55% to Rs1.96 billion from Rs1.26 billion in FY21.

The earnings per share (EPS) of the company have been on an increasing trend since 2017. In FY21, the EPS was Rs7.5, which increased to Rs10.4 in FY22.

About Company

National Foods was incorporated in Pakistan on February 19, 1970, as a private limited company under the Companies Act 1913. It was subsequently converted into a public limited company under the 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.

Credit: Independent News Pakistan-WealthPk