Karachi: In the first nine months of calendar year 2024, FFL reported a net revenue of PkR17.8 billion, marking a 20% year-on-year increase from PkR14.8 billion in the same period last year. This growth was primarily driven by an increase in ultra-high-temperature (UHT) milk production volumes. Additionally, the company's gross margins improved to 18% during this period, up from 13% in the previous year, owing to efficiencies in the supply chain and the integration of its high-margin cereal business.

According to AKD Securities Limited, the company's operating profit rose significantly to approximately PkR1.25 billion, up from PkR379 million in the previous year, representing a year-on-year increase of 230%. FFL also reported earnings of PkR560 million during the period, with earnings per share (EPS) of PkR0.24, compared to a loss after tax of PkR109 million (loss per share of PkR0.04) in the same period last year.

FFL has made notable strides in enhancing its operations, with a 14% share of the UHT milk market, which constitutes only 6% of the industry's total tradable milk production of approximately 62 billion liters annually. The company has also launched new products, including desi ghee, cereal, and pasta, and plans to export buffalo milk to China through a strategic partnership, which is anticipated to yield higher margins.

Over the past two years, FFL has doubled its growth and expanded its market presence by acquiring leading cereal and pasta brands in February 2024. The company remains insulated from macroeconomic risks due to its reliance on locally sourced raw materials and operates without any debt. Additionally, FFL acquired Fauji Infravest for PkR210 million, with expected returns to begin in the upcoming calendar year.

FFL has experienced significant growth in the UHT milk segment over the past two years and possesses strong brand equity, which management aims to leverage across its product portfolio to drive future growth. The management projects that the company's revenue will surpass PkR100 billion by CY29E, up from PkR20 billion in CY23, and plans to work closely with other group companies, including Fauji Meat, Fauji Fresh and Freeze, and Fongrow, to create synergies.