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Today 11:05 am – Wouter Baan
FrieslandCampina’s Pakistani subsidiary has performed mixed in the first quarter of 2024. Turnover has shown a fairly strong increase due to volume growth, although margins are under pressure for various reasons.
FrieslandCampina Engro Pakistan Limited, as the subsidiary is fully called, saw turnover increase by 21% in the first three months of this year to 27.4 billion Pakistani rupees. Converted at current exchange rates, this amounts to around €91 million. The company owes the increase in turnover to volume growth, sometimes driven by price promotions. The latter means that the profit margin is under pressure.
In addition, the devaluation of the rupee and rising raw material and energy prices are taking a bite out of the margin, while higher interest rates are also affecting the company. Bottom line, profits fell by 32% to 665 million rupees. This amounts to more than €2 million.
In line 2023
The first quarterly figure continues the trend of 2023. Even then, the company saw sales increase and margins shrink. The higher sales do strengthen FrieslandCampina’s market position in the South Asian country.
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Wouter Baan
Wouter Baan is editor-in-chief of Boerenbusiness. He also focuses on dairy, pig and meat markets. He also follows (business) developments within agribusiness and interviews CEOs and policymakers.
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Tags: FrieslandCampinas profits Pakistan continue decline News Melk
