Fauji Foods registers loss of Rs780.247mln

Fauji Foods Limited (FFL) has announced a net loss of Rs780.247 million for the quarter ended June 30, 2017, as compared to the loss of Rs1.226 billion during the corresponding quarter of the last year, a statement said on Wednesday.

The loss per share (LPS) stood at Rs5.91 in the quarter under review as compared to LPS of Rs2.04 during the same period of the last year. FFL has also announced to issue 300 percent right shares at the price of Rs10/share in proportion of 300 ordinary shares for every 100 ordinary shares.  The sales revenue during the outgoing quarter stood at Rs1.25 billion, up 101 percent as compared to the sales of Rs618.786 million during the quarter ended June 30, 2016.

For the half-year ended June 30, 2017, FFL posted a net loss of Rs1.226 billion, translating into LPS of Rs9.29 as against the loss of Rs435.139 million and LPS of Rs4.91 during the same period of the last year.

The proceeds from rights issue will be utilised for the expansion of sales and distribution network, increasing media spending for enhanced brand equity and improvement of raw milk procurement.  The proceeds would also be used on research and development of new products and meeting working capital requirements.