Karachi: FrieslandCampina Engro Pakistan Limited reported its financial results for 2024, highlighting a notable increase in revenue but facing challenges in maintaining profit margins. The company's revenue reached 107.05 billion rupees, marking a rise from 100.24 billion rupees in 2023. However, the net profit margin slipped to 2.1% from 1.5% in the previous year, reflecting ongoing pressures on profitability.

According to information available from the Pakistan Stock Exchange (PSX), the company's earnings per share (EPS) increased to 2.87 rupees in 2024 compared to 1.97 rupees in 2023. Despite the higher EPS, the price earnings ratio decreased from 41.56 in 2023 to 31.10 in 2024, indicating a shift in investor sentiment and market valuation dynamics.

FrieslandCampina's total assets turnover ratio improved to 2.6 in 2024 from 2.4 in 2023, suggesting a more efficient use of assets in generating sales. However, the operating cycle lengthened to -61.8 days from -52.1 days, indicating slower inventory and receivables turnover relative to payables.

The company's shareholders' equity rose to 16.46 billion rupees, up from 14.18 billion rupees in 2023, bolstering its financial stability. On the liquidity front, the current ratio remained steady at 1.0, while the quick ratio held at 0.5, demonstrating consistent short-term financial health.

Despite these challenges, FrieslandCampina maintained its market capitalisation growth, which stood at 68.46 billion rupees in 2024, compared to 62.79 billion rupees in the previous year. The market value per share at year-end was 89.25 rupees, an increase from 81.87 rupees in 2023, reflecting investor confidence in the company's long-term prospects.

The company's production capacity for dairy-based products increased to 697,197,000 litres, up from 592,831,000 litres in 2023, while actual production decreased to 360,204,000 litres from 375,894,000 litres. Frozen dessert production saw a rise to 25,760,000 litres, compared to 24,820,000 litres in the previous year.

FrieslandCampina's return on equity improved to 13.4% in 2024, up from 10.6% in 2023, while the return on capital employed increased to 13.5% from 10.4%. These improvements indicate enhanced efficiency in generating profits from shareholders' investments and overall capital.

Overall, FrieslandCampina Engro Pakistan Limited's 2024 financial results demonstrate a strong revenue performance amid challenges in maintaining profit margins, reflecting broader market conditions and operational dynamics. The company's efforts to expand production capacity and improve asset utilisation highlight its strategic focus on growth and efficiency.