Engro Foods Ltd. held an analyst briefing yesterday to discuss their 9MCY11 results, which were released on 20th October 2011. During 9MCY11, the company posted a Profit After Tax of Rs408 million (with earning per share of Rs0.56) as compared to a PAT of Rs35 million (Rs0.08) in the same period last year.
For 3QCY11, revenues rose by an impressive 50 per cent QoQ to Rs8,224 million but overall PAT was 35 per cent lower as EFOODS reported a PAT of Rs191 million versus Rs215mn in 3QCY10.
Management discussed the key performance highlights of the respective business segments. EFOODS Dairy and Juices retained its market leadership in the Ambient UHT segment with a 44 per cent market share, as per internal estimates. The Ambient UHT market grew by11per cent YoY in 9MCY11, while EFOODS experienced 20 per cent volumetric growth in the same period. Omung’s initial performance has continued to exceed management expectations.
Management estimates that EFOODS Ice Cream commands a 23 per cent market share in the market, with Omore volumes increasing by 45 per cent YoY in 9MCY11. The prevailing power crisis in the country continues to have a negative impact on the growth potential of the segment. With a herd size of 2,615 animals, the dairy segment has a 13.7 litres/day yield, which remains below our initial expectations, said Ali Hussain at HMFS.
While discussing the key performances, the Board of Directors of Engro Corp had approved the sale of the 70 per cent equity stake (133 million shares) of Engro Food Supply Chain Ltd held by EFOODS to be sold to its sister company EXIMP. The transaction will provide EFOODS with inflow of Rs1.4 billion in proceeds along with a Rs51 million one time gain in 4QCY11. The transaction is subject to the approval of the stakeholder at the EOGM scheduled for November 28, 2011.
