Karachi: National Foods Limited (NATF) held its corporate briefing today, detailing a challenging fiscal year 2024 that saw a significant 40% year-over-year decline in earnings per share to Rs8.19, with no dividend payout announced. Despite the dip in earnings, the company reported a substantial 34% increase in consolidated revenue, driven by robust growth in both its retail and core businesses.

According to JS Global, the company’s retail business, particularly A1 Cash and Carry in Canada, experienced a notable 42% growth, while core business revenues, including local and export markets, rose by 25% year-over-year. NATF’s local gross revenue increased by 26%, and exports surged by 41%, raising the export share of consolidated revenues from 50% in FY23 to 52% in FY24.

The sales growth was supported by the commencement of a new production facility in Faisalabad and a strategic move into tomato production for its ketchup facility, which contributed significantly to the company’s revenue. National Foods continues to lead the national market in several categories, including ketchup, with a 59% share. The company also launched a new range of products, Karachi Khas, targeting specific market segments within the city.

Further, NATF initiated its Tomato seeds-table project during the year, aiming to reduce reliance on imported tomatoes, which previously stood at 100% from China, to 75%-80%. This move is part of a broader strategy to increase localization and support the substantial revenue from ketchup, which accounts for approximately Rs9 billion, or about 20% of the top-line.

Additionally, the newly commissioned plant in Faisalabad is set to boost production volumes and improve distribution across the country. This facility, located in a Special Economic Zone (SEZ), will also provide the company with significant tax benefits, including a 10-year tax holiday.

Management expressed confidence in the continued strong performance of its Canadian subsidiary, A1 Cash and Carry, projecting it to reach CA$300 million in top-line growth this year. They also noted that the changes in the tax regime for exporters would be mitigated by the low 6% share of exports in core revenues and the reduced tax rate benefits from the Faisalabad site’s SEZ status.