Karachi, January 24, 2013: The Board of Directors of Engro Foods Limited has announced an extraordinarily brilliant performance and a profit after tax of Rs.2,595 million for the year ended December 31, 2012 as compared to Rs 891 million in 2011.
Engro Foods’ revenue for 2012 recorded another year with continuous stellar growth of 35% and stood at Rs. 40.17 billion as compared to Rs. 29.86 billion in the 2011. The Company also announced an EPS of Rs. 3.43 & Rs. 3.40 (basic & diluted respectively) for the year 2012, growth of 181% vs 2011. Focused investment and growth, diversification of the existing product portfolio and effective product mix management along with a strong emphasis on operational excellence through the various business segments remained the key elements in the achievements of our results in 2012. These results were backed by investments in infrastructure and product portfolio in order to meet consumer needs – a trend widely reflected in our bottom line profitability.
Summary of Results for the year ended December 31, 2012
|(Rs. in millions)||2012||2011|
|% of sales||12%||8%|
|Profit after tax||2,595||891|
|% of sales||6%||3%|
|Earnings per share – basic (Rs.)||3.43||1.22|
|Earnings per share – diluted (Rs.)||3.40||1.22|
Dairy & Beverages:
The Company continued its aggressive business strategy of growth and diversification and achieved volume growth of 25% in 2012. Growth in the ambient UHT milk segment was driven by tea creamers where Tarang maintained its leadership While Dairy Omung also contributed to the growth. Omung Lassi – the new entrant in the market – continued to reflect strong promise in its newly formed category. The Dairy & Beverages segment recorded revenue of Rs 37.37 billion and profit after tax of Rs 447.77 million.
Ice cream and Frozen Desserts Segment:
The ice cream market showcased a downward spiral due to the continued energy shortage that severely impacted the cold chain infrastructure in the country. As a result the ice cream segment registered a volumetric decline of 3 %. The company, however, continued investment in its brands, product development and cold chain infrastructure. The Ice Cream segment recorded revenue of Rs 2.80 billion and loss after tax of Rs 409.09 million.
Dairy Farm Segment:
The Company’s Nara Dairy Farm continued to remain a rich and nutritious source of raw material for its dairy segment. The Nara Farm produced over 9,224 million liters of milk in 2012 compared to 5,679 million liters in 2011 with a total herd size of over 3,526 animals.
The Board expressed confidence in the strategic vision and direction of the management and indicated a clear signal to pursue a long-term growth strategy by building a portfolio of food business.