Engro Foods’ profit declines 70.2 percent

KARACHI: Engro Foods Limited has announced a net profit of Rs330.819 million for the quarter ended March 31, 2017, showing a decline of 70.2 percent as compared to the profit of Rs1.108 billion during the same quarter of the last year.

The earnings per share clocked in at 43 paisas for the period under review as against Rs1.45 last year. The company did not announce any payouts along with the corporate results.  The earnings came below market expectations and resultantly Engro Foods scrip lost 2.26 percent at the local bourse on Thursday.

The major drag on earnings came from 27 percent decline in sales revenue, which stood at Rs8.812 billion for the quarter ended March 31, 2017 as compared to the sales of Rs11.74 billion during the corresponding period of the last year.

An analyst at Taurus Securities said during the period, the dairy producer witnessed a huge slump of 25 percent in its top-line, amid declining volumes on account of stiff competition from new comers and aggressive marketing done by some of the existing players.