Fauji Foods Limited (PSX: FFL) has reported a profit after tax (PAT) of Rs. 656 million for the calendar year ending December 31, 2024, reflecting an 8 percent increase compared to Rs. 605 million in the previous year. Despite the improved financial performance, the company did not announce any bonus shares or cash dividends for the period under review.
FFL recorded a 21 percent increase in net revenue, reaching Rs. 23.4 billion in 2024 compared to Rs. 19.3 billion in 2023. The company attributed this growth to the strong performance of its flagship product, Nurpur UHT milk, which saw a 45 percent increase in revenue and a 29 percent rise in volume compared to the same period last year.
In line with its strategy to enter high-margin segments, FFL expanded its product portfolio by acquiring a cereals business in February 2024 and launching Opa Pasta in the fourth quarter of the year. These additions have diversified the company’s offerings across multiple culinary categories.
The company’s gross margins improved from 13.1 percent in 2023 to 15.8 percent in 2024, driven by a focus on cost efficiencies and supply chain improvements. Operating profit surged by 150 percent, reaching Rs. 1.02 billion in 2024 compared to Rs. 0.41 billion in the previous year.
FFL also reported a significant reduction in finance costs, which dropped by 83 percent to Rs. 54.6 million from Rs. 323.8 million in 2023. However, marketing and distribution expenses increased by 29 percent to Rs. 1.7 billion, while administrative expenses rose to Rs. 940 million. Other income grew by 129 percent, reaching Rs. 546 million.
The company’s EBITDA grew by 56 percent, closing at Rs. 1.7 billion in 2024 compared to Rs. 1.09 billion in 2023. Earnings per share (EPS) remained steady at Rs. 0.26, the same as the previous year.
Market Performance
At the time of filing, FFL’s stock was trading at Rs. 15.58 on the Pakistan Stock Exchange, down by 4.36 percent or Rs. 0.71, with a turnover of 26 million shares on Tuesday.
Fauji Foods stated that its commercial strategy, focused on high-margin segments and operational synergies between cereals, dairy, and pasta, has positioned the company for sustainable growth. The company remains optimistic about its future performance as it continues to strengthen its product portfolio and operational efficiencies.
