Karachi, September 13, 2021: National Foods Limited, at the group level, delivered a healthy topline and bottom-line growth of 20 percent and 19 percent respectively for the financial year 2021 despite the prevalent covid-19 situation.
The top line continued its momentum which was supplemented by cost and revenue transformation measures enabling steady gross and net profit margins.
The group earned net Profit after Tax (PAT) of Rs 1,759 million for the year ended June 30, 2021, which is 5.1 percent of net sales and 19 percent up versus last year.
The group’s Core Business’ PAT margin to net sales closed at 6.7 percent which is 0.3 percent higher than FY20. Similarly, A1 Bags & Supplies Inc. maintained PAT margin to net sales at 5 percent.
The company has announced a cash dividend of Rs 5 per share and a bonus issue of 1 share for every 4 shares held on the date of determination of entitlement to receive the 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 customs 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 the export of products.
“The local business and political landscape have 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.
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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 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.