October 24, 2022 (MLN): The net losses of Fauji Foods Limited (PSX: FFL) for the period of nine months ended on September 30, 2022, have jumped by 63% YoY to clock in at Rs1.94 billion (LPS: Rs1.23), compared to the losses incurred in 9MCY21 Rs1.19bn (LPS: Rs1.53), as per the financial statement revealed by the company on Monday.
Despite the losses. the company has strengthened its retail network in northern regions and it is also penetrating the southern market by enhancing its footprint in Karachi.
Resultantly, the company managed to uplift its topline by 20.8% to Rs8bn in 9MCY22 on the back of an improved distribution network, efficient procurement, and process advancement.
However, the higher cost of sales resulted in a gross loss worth Rs282mn in the review period.
With regards to the major expenses, the company observed a 37.5% YoY expansion in terms of marketing and distribution expenses to clocked in at Rs1bn in 9MCY22. Meanwhile, administrative expenses jumped to Rs322.664mn during the period under review.
Similarly, the finance cost of the company has dropped by 5% YoY to stand at Rs909bn.
On the income front, the head of other income posted a 2x YoY increase during the period to lock in at Rs137.76mn during the period under review.
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