ENGRO FOODS LIMITED
ANALYST BRIEFING – Q2 2016
BUSINESS HIGHLIGHTS
Business Highlights
Dairy & Beverages
•
Campaigns
- Olper’s: Olpers Sprite joint promotion
Olpers 750ml
Olpers 1.5 ltr
Olpers School Campaign
- Omung: Omung Gluc0 (Jeet ki Omung)
•
Market Share
56%
56%
Mar-15
Dec-15
•
Volumetric Growth
-
Q2’16 vs. Q2’15:
-
HY’16 vs. HY’15:
54%
54%
Mar-16
May-16
-4.5%
-4.8%
Business Highlights
Ice Cream & Frozen Desserts
•
-
Campaigns
Omore Fun Stick
Choco Vanilla cone
Omore Premium
• Volumetric Growth:
- Q2’2016 vs. Q2’2015: 8%
- HY’2016 vs. HY’2015: 8%
FINANCIAL HIGHLIGHTS
Financial Highlights
Engro Foods Limited
Revenue
Revenue
The company achieved a revenue of PKR 11,588 Million
in Q2’16.
- Q2’16 vs. Q2’15:
-5%
-
HY’16 vs. HY’15:
13,000
12,253
12,521
12,571
11,743 11,588
12,000
PKR MN.
11,000
10,000
9,000
-6%
8,000
7,000
Q2'15
-
HY’16 vs. HY’15:
GP as % of revenue
Gross Profit
Gross profit increased by:
- Q2’16 vs. Q2’15
2.1%
0.3%
21%
20%
Q3'15
Q4'15
7.4%
5.0%
Q1'16
4.5%
PKR MN.
1,000
Earnings per share
EPS (Basic)
Q1'16
Q2'15
Q3'15
Q4'15
Q1'16
Q2'16
1.19
0.81
0.74
1.45
1.11
Q2'16
28%
1,200
PKR 853 Mn vs. PKR 909 Mn.
PKR 1,961 Mn vs. PKR 1,978 Mn.
Q4'15
27%
25%
Q2'15
Profit After Tax
- Q2’16 vs. Q2’15:
- HY’16 vs. HY’15:
Q3'15
800
600
400
Q2'16
9.4%
7.4%
10.0%
1,108
909
-10.0%
853
624
561
-30.0%
-50.0%
200
-70.0%
PAT
-90.0%
Pat %
Financial Highlights
Dairy & Beverages
Revenue
Revenue
In Q2’16, Dairy & Beverages segment reported a topline
of PKR 10,160 Million.
- Q2’16 vs. Q2’15:
-8%
-
HY’16 vs. HY’15:
13,000
12,000
12,255
11,013 11,173
11,084
PKR MN.
11,000
-7%
10,160
10,000
9,000
8,000
7,000
6,000
Q2'15 Q3'15 Q4'15 Q1'16 Q2'16
GP as % of revenue
Gross Margins
27%
23%
22%
18%
20%
Q2'15 Q3'15 Q4'15 Q1'16 Q2'16
PAT
PKR 730 Mn vs. PKR 826 Mn.
PKR 1,932 Mn vs. PKR 1,998 Mn.
1,400
1,202
1,200
1,000
PKR MN.
Profit After Tax
- Q2’16 vs. Q2’15:
- HY’16 vs. HY’15:
826
743
800
600
730
486
400
200
Q2'15 Q3'15 Q4'15 Q1'16 Q2'16
Financial Highlights
Ice Cream & Frozen Desserts
- HY’16 vs. HY’15:
15%
Revenue
1,600
1,400
1,240
1,428
1,348
1,200
PKR MN.
Revenue
In Q2’16, Ice Cream & Frozen Desserts segment
reported a topline of PKR 1,428 Million
- Q2’16 vs. Q2’15:
15%
1,000
800
659
600
316
400
200
GP as % of revenue
Q2'15 Q3'15 Q4'15 Q1'16 Q2'16
Gross Margins
47%
51%
46%
40%
10%
Q2'15 Q3'15 Q4'15 Q1'16 Q2'16
PAT
Profit /(Loss) After Tax
- Q2’16 vs. Q2’15:
PKR 196Mn vs. PKR 98 Mn.
HY’16 vs. HY’15:
PKR 77Mn vs. PKR (39) Mn.
196
200
PKR MN.
-
300
100
140
98
Q2'15 Q3'15 Q4'15 Q1'16 Q2'16
(100)
(200)
(119)
(176)
Major Updates
•
IMPACTING 2ND QUARTER PROFITABILITY:
o Super Tax at the rate of 3% was imposed on Company’s income for the tax year
2016 (i.e. for the year ended December 31, 2015) for rehabilitation of temporary
displaced persons' levied.
o
•
Loss on revaluation of Farm Animals was incurred during 2nd quarter due to falling
international market prices of animals.
UPDATE FROM FINANCE BILL 2016:
o
Change in Sales tax regime on dairy products from zero-rating to exempt.
o
25% Regulatory duty on imported powder was imposed in addition to 20% custom
duty already in place.
o
Impact of above is ~ Rs. 6 – 7 per litre on overall portfolio; Price increases have
been taken to mitigate the impact
Thank You