Key Takeaways:
• Management target sales of PKR 10 billion in FY25 and PKR 14 billion by Dec-25.
• Margins to remain stable.
• Finance cost is not an actual outflow – cash is redirected in to the business.
Company’s net sales increased by 19% YoY to PKR 7,210 million in FY24. Meanwhile, gross profit increased by 178% YoY to PKR 1,588 million in FY25. The increase in margins is due to cost efficient strategies deployed by the company through efficient procurement of bird, indexing of chicken prices and price revisions. . A significant decline in sales to international food chains was observed, due to the ongoing Palestine conflict.
However, the company continues its diversification efforts and keep expanding its customer base. Some of the customers mentioned by the management includes McDonalds Pakistan, KFC, Kababjees, Serena, Pearl Continental, Youngs, PIA etc. .
Management noted that the company is currently operating at capacity of 20-25%, slaughtering approximately 120,000 birds. The company is seeking to enhance its capacity utilization. Regarding finance cost, the management highlighted that the reported finance cost does not reflect actual cash flow. The company has reached an arrangement with banks to pay the markups at the tail-end of maturity. Therefore, the quantum of finance cost reported in the Profit & Loss statement is redirected towards the growth initiatives.
Current sales mix includes 51% of KFC & McDonalds, 6% retail segment, 6% corporate segment, 32% HoReCa segment and 5% exports. .
Going forward, the management forecasts sales target of PKR 10 billion in FY25 and PKR 14 billion by December 2025. The management hinted that the company would be spotted with a big retail chain of Karachi very soon. Currently, their products are available at Naheed and Metro. The company is also expanding its market share in fish products namely raw fish fillets and raw finger fish.
Important Disclosures
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