Corporate results: Engro Foods’ earnings up 1.4%

Profit amounts to Rs633m during July-September period

KARACHI: Engro Foods (EFOODS) posted a net profit of Rs633 million in the third quarter (Jul-Sep) ended September 30, up just 1.4% compared with Rs624 million in the same period last year, according to a company notice sent to the Pakistan Stock Exchange (PSX).

This result was below market expectations mainly due to lower than expected sales, Topline Securities reported Wednesday.

The company posted a net profit of Rs2.59 billion in the first nine months (Jan-Sep), down 0.38% compared with Rs2.60 billion in the same period last year.

The company reported a revenue of Rs11 billion, down 12% year-on-year (YoY) in 3Q2016. Revenues fell short of expectations mainly due to heated competition in the liquid tea whitening segment.



Consequently, the company’s market share in Ultra High Temperature (UHT) category fell by 2 percentage points to 54% YoY in May 2016, as per Nielsen’s survey.

According to the report, increase in competition from new entrants in tea whitener category, decline in consumption due to poor law and order situation, and volatility in international milk powder prices as key risks for the company.

Published in The Express Tribune, October 19^th, 2016.

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