Fauji Foods Ltd announced its Annual Financial Results for the year 2020 where it posted Net Loss of PKR 3.058 billion as compared to loss of PKR 5.788 billion in same period last year.
FFL was able to achieve significant sales growth despite COVID19 Challenges. Sales revenue fo the firm increased to PKR 7.37billion as compared to PKR 5.74 billion in last year marking 28% YoY growth.
Higher sales led to Gross margins of the company turning positive albeit at minimal level of 0.8%. Company also curtailed its Marketing, Distribution and Admin expenses to reduce losses. Loss from operations stood at PKR 1.147 billion in 2020.
FFL’s increased reliance on short term Borrowing led to Increase in Finance cost of PKR 1.75 billion which further increased losses for the company. Loss per share for the company was at PKR 4.62/Share.
FFL has seen continuous losses for past many years due to negative margins and higher Marketing/distribution Costs.
Both Fauji meat limited (FML) and Fauji Foods Limited (FML) has so far been a major concern at the group level, where the combined subsidiaries posted significant losses.
Company has frequently raised Rights Issue to counter its losses and raise funding for its operations. However, despite many rounds of funding, FFL still remain in Losses.
Previously, a Chinese company had shown interest in acquiring a major stake in the company. However, the deal was called off before finalization.
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