The food sector has posted a whopping return of 129 per cent in the current financial year so far, securing top slot amongst other sectors while massively outperforming the benchmark KSE-100 index that provided a return of 24 per cent.
Within the sector, Nestle has been a shining star all along as it provided a gigantic gain in its market capitalisation of almost 200 per cent since Jun-10 followed by Rafhan Maize and National Foods punching in 134 per cent and 78 per cent returns, respectively, according to an InvestCap research note.
Profits growing at a phenomenal pace
Profits of the five major food companies – Nestle, Unilever, Unilever Foods, Rafhan Maize and National Foods – continued to grow at a significant rate while posting a massive growth of 50 per cent during the previous quarter (January to March 2011). Sales also posted over 30 per cent growth during the same quarter mainly on account of double digit inflation in the country alongside volumetric growth despite, says the note.
As far as individual company are concerned, National Foods showed impressive profits during the preceding quarter, posting 65 per cent growth followed by Unilever Pakistan’s 54 per cent and Nestle’s 50 per cent. A similar growth pattern is expected for the current quarter as well on account of continued double-digit inflation and government’s stance to tax counterfeit products, adds the note.
Published in The Express Tribune, June 29th, 2011.
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