The performance of Al Shaheer Corporation Limited (ASC), Pakistan's largest meat exporting and retailing publicly listed company has been exceptional during FY16 and this phenomenal performance has continued during the nine months ending March 31, 2016. ASC has continued with an accelerated growth trajectory and clocked 51 percent additional revenue versus the same period last year.
The increase in revenue is a mixture of growth mix in retail, export sector and B2B sector of the company. During, the nine months, Al Shaheer's domestic to export sales ratio has improved, with 29 percent year -on-year of its volume coming from within Pakistan. The export business grew by 40 percent year-on-year on the back of growth in GCC as well as increased penetration in the Saudi Arabian market.
On the other hand in the retailing sector, the MeatOne business grew by 34 percent year-on-year during this period. It is important to note that in the third quarter the revenue increased by 38 percent year-on-year while in first and second quarter sales grew by 69 and 46 percent year-on-year respectively.
The core cost has mostly stayed on the higher side, but that was expected due to the nature of the business and higher sales. Though, the margins did not grow in line with the revenue growth during the nine-month period. It has to do with the business cycle of the Company and also, due to the higher livestock prices during the nine months.
The other income for the nine months increased substantially on the back of reversal of provision for doubtful debts, dividend income, gain on short-term investment and exchange gain on foreign currency transactions.
Although, for the period under discussion the financing costs has come down significantly amid lower interest rates and deleveraging post-IPO also provided support to the bottom-line.
The higher revenue and other income along with lower finance cost have beefed up Al Shaheer's bottom-line, and the Company reported earnings of Rs267 million for the 9MFY16 period, up 49 percent year-on-year to Rs179 million during the same period last year.
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