FrieslandCampina and Engro Eximp FZE partner for dairy exports worldwide

Karachi: FrieslandCampina Engro Pakistan (FCEPL) and Engro Eximp FZE (EEF) signed a Franchise Agreement to enhance dairy exports from Pakistan.

In line with FrieslandCampina’s global purpose of nourishing by nature, this partnership will enable FCEPL to expand its global footprint. Together, FCEPL and EEF will serve the Pakistani diaspora and markets which are milk-deficient, as well as uplift the dairy farmer community of Pakistan.

Imran Husain, CFO and strategic supply chain director FCEPL, said: “This partnership will unlock a new chapter for FCEPL and our farmers. Growing our export base will help further our purpose of providing nutrition and improving livelihoods of our farmers while bringing in foreign currency earnings for Pakistan, which is essential in the current economic situation. We are pleased to partner with Engro Eximp FZE as the global franchise for exports and are confident that their trading expertise will be integral to collective growth.”

Talking about this collaboration, Ghias Khan, President & CEO, Engro Corporation, said: “Engro’s strategic partnership with FCEPL is of critical importance. The agreement will increase Pakistan’s dairy exports bringing in much needed foreign exchange to the country while enriching farmers’ livelihoods. Pakistan can serve as a food basket of the Middle East, and Engro is confident that this partnership is a formative step in that direction.”

The agreement was signed between Imran Husain, CFO and strategic supply chain director FCEPL and Kaleem Asghar, CEO, Engro Eximp FZE, at the Gulfoods 2023 in Dubai, in the presence of FCEPL team and Ghias Khan, President & CEO, Engro Corporation.

FrieslandCampina Engro Pakistan announces Q3, 2022 results

Karachi – FrieslandCampina Engro Pakistan Limited (FCEPL) announced its financial results for Q3, 2022. The Company reported revenue of PKR 52.8 billion for the nine months ended, showcasing 37% increase versus same period last year, led by volume growth, mix improvement and distribution expansion.

Operating profit reflected a growth of PKR 500 million vs last year. However, the business witnessed decline in profit after tax of Rs 194 million vs last year (Rs 1,765 million vs Rs 1,959 million) on the back of higher finance cost due to increase in interest rates and higher taxation due to imposition of Super Tax.

Dairy and beverages
With a growth of 36.4% versus last year, the segment reported a revenue of Rs. 46.1 billion. Olper’s led the growth in the segment along with strengthening its market leadership position through consistent brand building and trade activities.

Significant expansion was witnessed in the retail footprint and E-Commerce channel during the quarter. The segment will continue to explore new channels and route to markets to serve its customers effectively and efficiently.

The ‘Happy Mornings’ campaign by Olper’s UHT is resulting in strengthening the brand’s equity and accelerating conversion from loose milk.

Leveraging FrieslandCampina’s global expertise to introduce new products and innovations as a key driver of future business growth, the Company recently launched Olper’s Cheese. In August 2022, Olper’s Flavoured Milk launched its new campaign ‘No Break In School Performance’.

The Company’s other products like Olper’s full cream milk powder (FCMP), Olper’s Cream and Tarang have also gained healthy market shares despite strong competition.

Ice Cream and Frozen Desserts
With a growth of 37.9% versus last year, the segment reported a revenue of Rs. 6.8 billion. This growth was enabled by segment’s investment behind season opening activities and expansion of the trade universe by inducting more assets in the market.

To give consumers an experience of a value-added offering, a dual chocolate flavored product with chocolate sauce and chocolate chips, the Omore Double Choco Chips Cone has been launched at an accessible price point in 2022.

Sustainability & CSR
In light of the recent floods in Pakistan, FCEPL undertook flood relief efforts to support the affectees in Sindh and Balochistan with food, shelter and free animal treatment camps.

To regenerate the environment, FCEPL partnered with the World Wide Fund for Nature (WWF-Pakistan) on a tree plantation initiative to increase local resilience to climate change and increase tree cover.

Future outlook
Rising inflation, currency devaluation and restrictive monetary policies continue to put pressures on the Company’s profitability. Moreover, imposition of Super Tax will impact the formal sector thus impacting the government’s ability to collect taxes in the long run. However, with an agile business model in place, the management is confident that it will be able to drive efficiencies across value chain and continue to deliver growth.

FCEPL’s purpose is to transform the health and well-being of Pakistanis, now and for generations to come.

Leveraging the global expertise and heritage which spans 150 years, FCEPL remains committed to the highest standards of hygiene, food safety and sustainability to provide safe, affordable, and nourishing dairy products to millions of Pakistanis, every day.

FCEPL sets up Flood Relief Camps to provide food, shelter, medical assistance

FrieslandCampina Engro Pakistan (FCEPL) is undertaking flood relief efforts to support the affectees with food and shelter. Efforts also include medical assistance for animals of the affectees.

The Company is working closely with the District Administrations and local government authorities to provide the following to the affected areas:

Ration bags covering 20 days of food for 2,700 families.
• Tents for shelter
• Medical Camps for Livestock
The efforts are focusing on Sukkur, Khairpur, Nara, Larkana, and Hyderabad districts.

Reiterating FCEPL’s commitment to Pakistan, Saud Pasha, Director Corporate Affairs at FCEPL, said: “We are trying to reach as many affected families as possible to provide food and shelter. Livestock is a means of livelihood in these communities; by providing vaccinations and medical assistance for the animals, we hope to help the affectees continue to earn an income and rebuild their lives in the long-run.” FCEPL has set up medical camps at 8 different locations in the said districts.

“These are unprecedented times. All of us need to work together and do as much as we can for the people of Pakistan,” Saud Pasha added.

FCEPL has also organized a voluntary donation drive for employees to generate more funds and scale impact of relief efforts. Earlier, FCEPL partnered with Roshan Pakistan Academy for flood relief in Balochistan, by donating dairy products to the ration packs being distributed to the affected areas. FCEPL continues to stand with the people of Pakistan.

FrieslandCampina Engro Pakistan Posts Profit of Rs. 938 million in H1 2022

Despite steep increases in commodity costs due to soaring inflation, and the rapid, unprecedented devaluation of the Pakistani Rupee, FrieslandCampina Engro Pakistan Limited (FCEPL) registered a Profit After Tax (PAT) of Rs. 938 million in the first half of 2022 against Rs. 1,414 million for the same period last year.

The flagship brand, Olper’s, led the growth in the segment along with strengthening its market leadership position through consistent brand building and trade activities. The segment recorded growth of 23.4% versus last year with a revenue of Rs. 26.4 billion.

The significant expansion was witnessed in the retail footprint and E-Commerce channels during the period. The segment will continue to explore new channels and routes to market to serve its customers effectively and efficiently.

In Q1 2022, Olper’s UHT new campaign expanding on the theme of “Happy Mornings” was launched, which is already resulting in strengthening the brand’s equity and accelerating conversion from loose milk.

Olper’s Cream also launched a new copy refreshing its association with the morning occasion. The campaign not only focuses on Olper’s cream’s nutritional credentials as a morning spread but also highlights its versatility for other key occasions.

The company continues to leverage FrieslandCampina’s global expertise to introduce new products and innovations as a key driver of future business growth. The Company is focusing its attention on exploring new opportunities to offer breakthrough products that fulfill its consumer needs particularly around the morning occasion.

The company’s other products like Olper’s Flavored Milk, Olper’s full cream milk powder (FCMP), Olper’s Pro-Cal and Olper’s Cream have also gained a healthy market share in a short span of time despite strong competition from established players.

The segment of Ice Cream and Frozen Desserts recorded a growth of 39% versus last year with a revenue of Rs. 4.4 billion. This growth has been enabled by the segment’s investment behind season opening activities and expansion of the trade universe by inducting more assets in the market.

FCEPL was recognised internationally for its sustainability initiatives when it won the Gold Standard Award 2022 for Corporate Citizenship (CSR and Sustainability) by the Public Relations & Communications Association Asia Pacific (PRCA APAC) at a ceremony in Singapore.

The business environment remains challenging due to rising inflation and currency devaluation. However, with an agile business model in place, the company will continue to drive efficiencies across the value chain and deliver growth.

FrieslandCampina, HBL & SEDF partner for subsidized financing to empower dairy farmers

KARACHI: FrieslandCampina Engro Pakistan Limited (FCEPL), HBL and Sindh Enterprise Development Fund (SEDF) have collaborated to provide easily accessible, subsidized financing to dairy farmers in Pakistan with a long-term commitment of five years.

Dairy farmers require financial support to upscale their operations, enhance milk yield and improve herd size. Committed to Nourishing Pakistan with better nutrition and better living for farmers, FCEPL aims to provide a long-term sustainable financing solution for the dairy farmers in partnership with HBL and SEDF. This one-of-a-kind partnership will facilitate upscaling operations for sustainable dairy farming and the purchase of exotic animals, benefitting the overall milk supply value chain.

Ali Khan, Managing Director, FCEPL, said: “This is the first time such an initiative is being undertaken for dairy farmers. Our partnership with HBL and SEDF will enable farmers to upscale their operations, enhance milk supply within Pakistan and benefit the economy. Farmers will be able to make independent decisions to grow their operations. The idea behind the tripartite agreement is to work with farmers on herd improvement, mechanization and infrastructure development.”

Muhammad Aurangzeb, President & CEO – HBL stated: “Livestock and dairy alone contributes more than 14% to the national GDP. Pakistani dairy farmers produced more than 60 Billion Liters of milk during 2021-22 making it the fourth largest milk producer globally. Despite these impressive statistics, milk yields and animal productivity are amongst the lowest. This necessitates policy intervention and collaboration. HBL is the leading farmer financing provider in the country and is committed to enhancing financial inclusion in rural Pakistan. The Bank has been actively lending for dairy partnering with farmers for the purchase of quality animals and ensuring funds for feed, vaccine and animal well being. HBL’s dairy value chain partnership with FCEPL will facilitate dairy farmers in improving their farm practices and timely availability of credit. This will increase milk yield resulting in sustained and higher profits for our hardworking dairy farmers.”
Mehboob Ul Haq, Managing Director, SEDF said: “The Sindh Enterprise Development Fund is proud to team up with FCEPL and HBL in this new venture. We hope to provide dairy farmers with solutions to grow their business and strengthen the country’s dairy industry and economy. “

Leveraging the Prime Minister Kamyab Jawan Program (PMKJ) the total fund allocation for this tripartite arrangement for FCEPL recommended farmers is PKR 10 Billion. This partnership promises to strengthen the dairy farmer community where farmers between the ages of 21-45 are eligible to apply for a loan between PKR 1million to 10million with faster case processing and turnaround times i.e., within two weeks. The mark-up cost is as low as 4% with further subsidization by SEDF for farmers based in Sindh.

FCEPL has taken various initiatives over time for creating value for its farmer community such as extending advances at zero mark-up, cow subsidy programs, incentivizing hygienic practices, and investing in capability building of farmers with trainings on best practices and robust processes, thus improving the livelihoods of farmers and transforming the dairy sector of Pakistan.