Wednesday, September 28, 2022
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National Foods announces FY 20-21 results

National Foods Limited Group level posted a healthy baseline growth of 20% and 19% for the 2021 financial year, respectively, and despite the current situation of baseline growth of 19%. Topline continued its growth momentum with cost and revenue conversion measures that enable gross margins and fixed net profit.

The group earned net Profit after Tax (PAT) of Rs 1,759 million for the year ended June 30, 2021 which is 5.1% of net sales and 19% up versus last year.

The group’s Core Business’ PAT margin to net sales closed at 6.7% which is 0.3% higher than FY20. Similarly, A1 Bags & Supplies Inc. maintained PAT margin to net sales at 5%.

The company has announced a cash dividend of Rs 5 per share and bonus issue of 1 share for every 4 shares held on the date of determination of entitlement to receive dividend.

During the year, the contribution to the National Exchequer by NFL has further increased and the company paid over Rs 5,281 million (it was Rs 4,813 million in 2020) to the government and its various agencies on account of different government levies, including custom duty, sales tax and income tax.

Moreover, foreign exchange of Rs 2,220 million (it was Rs 1,361 million in 2020) was also generated through export of products.

“The local business and political landscape has been generally stable over the course of the year, especially with significant improvement in covid situation across the country post successful strategy being deployed for its management. Tax and economic reforms targeting positive movement in the economy have improved the investor confidence,” said Abrar Hasan, CEO NFL.

He added that NFL’s gross margins are dependent on key local and imported inputs and there is ambiguity over prices due to uncertain climatic changes. Low local outputs resulting in additional imports are hurting raw material pricing amid restricted price pass-on opportunities in a highly competitive environment.

“Devaluation of exchange rates during the fiscal year can impact company gross margins in the local business due to impact on prices of key inputs. However, with a fine balance of exports and imports, the company gets a natural hedging of the foreign currency fluctuation,” said the CEO.

“On the international front, the company recognizes the risk emanating from the regime change in Afghanistan and will continue to monitor and take measures to minimize the impact on the business,” said the CEO.

National Foods maintained its commitment towards its employees by providing them incentives and timely salary disbursements in the uncertainty prevailing during covid.

The CEO added that the company remains committed to drive business fundamentals and improve/maintain its market leadership position in all major categories through contingency planning.

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