Fauji Foods Limited coming aboard

Slow and surely Fauji Foods Limited (Formerly Noon Pakistan Limited) is starting to show its presence on the growing formal dairy sector of Pakistan.

According to a notice sent to PSX, Fauji Foods reported a 16 percent growth in its top line during the first six months of 2016.

The revenue grew on the back of higher volumetric sale and growth in market share of its products. But the company failed to translate that into bottom line growth.

Besides the higher core cost, the company saw higher operating expenses, particularly the distribution and marketing expenses.

But that is expected since the company is in the process of establishing distribution channels and focusing on strengthening its market position by investing in marketing and branding of its portfolio.
At the same, the finance cost has also grown during the six months particularly because Fauji Foods Limited is not only expanding its production facility but also making the plant cost efficient.