FrieslandCampina Engro Pakistan, the Pakistani subsidiary of Dutch multi-national cooperative FrieslandCampina, has recorded a revenue of PKR 30,771m for HY 2022 (around US$139m) thanks to ‘robust volume growth’ in both dairy and beverages and ice cream and frozen desserts segments.
This is a 25% increase compared to the same period in 2021 and registered profit after-tax of PKR 938m against PKR 1,414m vs 2021. Operating profit has dropped by 4.2%.
The results are favorable despite a challenging trading period, with a weakened rupee, high interest rates and soaring inflation affecting business in Pakistan.
The dairy and beverages segment reported a revenue of Rs. 26.4bn, an increase of 23.4% on the same period in 2021, with Olper’s driving the growth. FrieslandCampina Engro Pakistan says the brand’s performance was bolstered through a marketing campaign for Olper’s UHT while Olper’s Cream was also re-launched to refresh its association as a breakfast spread.
Meanwhile, the ice cream and frozen desserts segment grew by 39% vs 2021 with a revenue of Rs. 4.4bn.
The outlook ‘remains challenging’ however, with rising inflation and currency devaluation the main barriers to continued growth. “However, with an agile business model in place, the Company will continue to drive efficiencies across the value chain and deliver growth,” the company stated.