Karachi (Muhammad Yasir) Friesland Campina Engro Pakistan Limited (FCEPL) announced its financial results for the six months ended June 30, 2022. The Company reported a revenue of PKR 30,771 million, a 25% increase year-over-year. The growth was led by robust volume growth for both- Dairy & Beverages and Ice Cream & Frozen Desserts segments, as well as improvement in portfolio mix.

Despite steep increases in commodity costs due to soaring inflation, and the rapid, unprecedented devaluation of the Pakistani Rupee, gross profit grew by 2% even though margins declined. Increased interest rates and imposition of the Super Tax in Budget 2022-23 applied further financial pressure. The Company registered a Profit After Tax (PAT) of PKR 938 million against PKR 1,414 million for the same period last year.

Dairy and Beverages

With a growth of 23.4% versus last year, the segment reported a revenue of Rs. 26.4 billion. Olper’s, our flagship brand, led the growth in the segment along with strengthening its market leadership position through consistent brand building and trade activities.

Significant expansion was witnessed in the retail footprint and E-Commerce channels during the period. The segment will continue to explore new channels and routes to market to serve its customers effectively and efficiently.

In Q1 2022, Olper’s UHT new campaign expanding on the theme of “Happy Mornings” was launched, which is already resulting in strengthening the brand’s equity and accelerating conversion from loose milk.

Olper’s Cream also launched a new copy refreshing its association with the morning occasion. The campaign not only focuses on Olper’s cream’s nutritional credentials as a morning spread but also highlights its versatility for other key occasions.

The Company continues to leverage FrieslandCampina’s global expertise to introduce new products and innovations as a key driver of future business growth. The Company is focusing its attention on exploring new opportunities to offer breakthrough products that fulfill its consumer needs particularly around the morning occasion.

The Company’s other products like Olper’s Flavored Milk, Olper’s full cream milk powder (FCMP), Olper’s Pro-Cal and Olper’s Cream have also gained a healthy market share in a short span of time despite strong competition from established players.

Ice Cream and Frozen Desserts

With a growth of 39% versus last year, the segment reported a revenue of Rs. 4.4 billion. This growth has been enabled by the segment’s investment behind season opening activities and expansion of the trade universe by inducting more assets in the market.

To give consumers an experience of a value-added offering, a dual chocolate flavored product with chocolate sauce and chocolate chips, Omore Double Choco Chips Cone was launched at an accessible price point in 2022.

Omore signature thematic campaign “Wow Bhara Bite” continues to be on air and is the perfect expression of what Omore stands for as a brand – the purveyors of tasty, creamy treats in a wide variety of formats, which can be enjoyed by people of all ages – from kids & youth to adults.Financial performance & table

The financial performance of the company for the six months ended June 30, 2022, is summarized below:

	Six Months ended
	June 30, 2022
(Rs. in million)	2022	2021	Variation
Net Sales	30,771	24,590	25.1%
Operating Profit	2,290	2,389	-4.2%
% of sales	7.4%	9.7%	230 bps
Profit / (Loss) after tax	938	1,414
% of sales	3.0%	5.8%	270 bps
Earnings / (Loss) per share (Rs.)	1.22	1.84

 

Accolades

FCEPL was recognised internationally for its sustainability initiatives when it won the Gold Standard Award 2022 for Corporate Citizenship (CSR and Sustainability) by the Public Relations & Communications Association Asia Pacific (PRCA APAC) at a ceremony in Singapore. Our Dairy Development Program, an initiative designed to increase inclusion, profitability and quality for dairy farmers, is integrating sustainability into the dairy value chain and playing a transformative role in Pakistan’s dairy sector.

School Milk Program

The Company is collaborating with the University of Education and UVAS to implement a pilot school milk program in Punjab. Encompassing over 8000 students in 89 primary government schools of Attock and Sheikhupura, the program aims to evaluate the impact of provision of milk on the health and academic performance of children.

Future outlook

The business environment remains challenging due to rising inflation and currency devaluation. However, with an agile business model in place, the Company will continue to drive efficiencies across the value chain and deliver growth.

Our purpose is to transform the health and well-being of Pakistanis, now and for generations to come. Leveraging our global expertise and heritage which spans 150 years, Friesland Campina Pakistan remains committed to the highest standards of hygiene, food safety and sustainability. We will continue to provide safe, affordable, and nourishing dairy products to millions of Pakistanis, every day.

Pakistan (Muhammad Yasir) Renowned Economic, Energy, and Business Leadership came together for highlighting and exploring trade and strategic ties with the regional countries for boosting National and Regional Economies, through the development of infrastructure of Roads and Rail links, Energy Corridors, and Digital Connectivity.

Speaking at the “Thought Leaders Dialogue –  The Next Great Infrastructure Connector,” organized at a local hotel recently, by Nutshell Group and CORPORATE PAKISTAN GROUP, the speakers emphasized the need for a national consensus of all political parties on the core issue of the continuity and consistency of long-term policies. The roadmap of economic recovery is only possible under a comprehensive charter of the economy which is honored by all stakeholders. 

Muhammad Azfar Ahsan, Founder & CEO, Nutshell Group and CORPORATE PAKISTAN GROUP and Ex-Minister of State & Chairman Board of Investment, opened the session with his brief overview of the necessity to address the concern for regional connectivity as a pillar for the economic development of Pakistan. He stated the need for a strong policy structure that should be long-term. He hoped to have this session become an effective platform for highlighting the same. 

Senator Dr. Musadik Malik, Minister of State (Petroleum Division), shared his affirmation of the same by stating that ‘’Countries do not grow in isolation, rather regions grow, together like ASEAN, NAFTA, and GCC.’’ He said the economic growth of the region can only be sustainable with ties and development of projects of trade and energy infrastructure regionally. Lack of consistency and sustainability has already impacted the GDP negatively, up to 2 to 2.5% per the World Bank’s study. A small example of LNG can go a long way. Pakistan can import and become an exporter to the landlocked Central Asian states through Gwadar. He mentioned that TAPI and IP gas pipeline projects are very good projects but the regional instability remains the hindrance. Pakistan has to mitigate the security risk and diversify its energy mix. 

Dr. Moeed W. Yusuf, the Former National Security Adviser of Pakistan, commented on the 92% of border sharing with 3 important countries, India, Iran, and Afghanistan yet due to geopolitical challenges the trade has potentially suffered. Geo-economy is the combination of regional connectivity, partnership, and collaboration. Most Pakistan maintains fences with Iran and Afghanistan and the movement of the trade should be streamlined in a way that the fence should be a facilitation rather than a hindrance to the regional trade. 

Ali J. Siddiqui, Former Ambassador of Pakistan to USA, said Pakistan could be the major connector with the Central Asian countries as well as China, Iran, and Afghanistan through various projects. To begin with small projects of energy, logistics, and optical fiber will pave the way toward the sustainability of cooperation. He mentioned the sudden change after peace in Afghanistan as a catalyst for putting the plans into action; hence Pakistan needs to transform it into opportunities. This is the best time for formulated discussions and subsequent decisions. 

Ghias Khan, President Overseas Investors Chamber of Commerce & Industry (OICCI), confirmed that Pakistan enjoys a complimentary relationship with Central Asian states and has much to gain given a solid infrastructure. 

Dr. Shamshad Akhtar, Chairperson, Pakistan Stock Exchange, SSGC & Karandaaz; Former Federal Minister for Finance; Former Governor, State Bank of Pakistan, joined online to share her expertise with ASEAN projects. She stressed the availability of a dedicated fund for the development of regional connectivity. 

Aamir Ibrahim, CEO Jazz (VEON) and Chairman, Mobilink Microfinance Bank, added that commerce is evolving and we are under-investing in a jaundiced way. We must recognize the value that Pakistan has to gain in the future.

Air Chief Marshal Sohail Aman (Rtd), Chief Executive Strategic Engagements, Nutshell Group, and Pakistan’s Chief of Air Staff (2015-2018), in his closing address, shared hope and a way forward for the wonderful discussion and insisted on this thought to be carried forward. 

 

BlueEX joins hands with ABHI, Pakistan’s first financial wellness platform, to offer its employees the facility of Earned Wage Access, giving them the freedom to access their salaries whenever they want, saving them from financial distress.

On a mission to financially empower salaried individuals, ABHI is changing the landscape of the payroll in Pakistan and how an average employee spends/receives their salary by introducing the Earned Wage Access facility in the country. On the other hand, BlueEX prioritizes its employees’ financial wellness and understands that increased productivity in the logistics industry of Pakistan is imperative to the country’s future growth. Therefore, this partnership will help enable this growth, while building the overall financially empowered ecosystem.

In light of this collaboration, Omair Ansari – CEO & Co-founder of ABHI, explained that “ABHI’s ultimate goal is to provide financial wellness solutions to all employees. You can only live a happier, healthier, and more productive life when you are not stressed about finances, which is the core of ABHI’s existence. This partnership with BlueEX to offer earned wage access to all its employees will bring some much-needed security and relief to them, enabling us to work towards a financially stress-free and productive Pakistan.”