KARACHI: Frieslandcampina Engro registered its first quarterly loss of Rs130.62 million in the quarter ended March 31, 2020. The company had reported an after-tax profit of Rs83.45 million in the same period of the previous year, according to a notice sent to the Pakistan Stock Exchange on Wednesday.
Despite posting losses, Frieslandcampina Engro has given a return of 40% on its share as investors rallied to essential food providing company during the coronavirus pandemic.
Loss per share of the company stood at Rs0.17 in the period under review as compared to earnings per share of Rs0.11 in the quarter ended March 31 2019.
“Investors are looking for a company which provides essential food items instead of other durables that people will not prefer in the prevailing situation, which led the company’s share go up almost 40%,” said Topline Securities analyst Sunny Kumar.
On March 23, when the lockdown was announced, the company share price stood at Rs46 and now it is over Rs64.
Net revenue from contracts with customer clocked-in at Rs9.8 billion in the quarter of 2020 compared to Rs8.6 billion in the same period of the previous year.
Although sales of the company increased, its gross profit decreased alternately. Gross profit of the food company declined from Rs1.49 million in the quarter ended March 31, 2019, to Rs1.48 million in the quarter under review.
The company suffered due to the devaluation of rupee against the dollar in the quarter, Kumar added, as the company imports a great deal of raw material which is subject to fluctuation in the rupee value against the dollar.
Published in The Express Tribune, April 23rd, 2020.
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