National Foods Limited: performance and outlook

According to Business Recorder, National Foods Limited (PSX: NATF) reported a 12.96 percent rise in its topline to Rs38,135.14 million for the nine months of the current fiscal year, with gains in domestic and export sales. Net profit climbed 82.12 percent to Rs5198.209 million, lifting earnings per share to Rs22.30 from Rs12.24 a year earlier. The report links the slower cost growth to operational efficiency at the Faisalabad plant.

Gross profit rose 23.97 percent, with the gross margin widening to 38.85 percent from 35.40 percent in the same period last year. Operating profit increased 47.63 percent to Rs6237.88 million, and the operating margin reached 16.36 percent compared with 12.52 percent. Finance cost fell 30.39 percent on monetary easing, although the report notes that debt levels rose during the period.

Looking ahead, the company is refining its product and geographic mix and procuring more inputs from domestic suppliers, which the report says will ease cost pressure. National Foods FZCO, a wholly owned Dubai subsidiary, has set up National Foods Gulf (FZE) in Sharjah to widen its global footprint.