Engro Foods announces Rs 891 mln profit

Karachi: Board of Directors of Engro Foods Limited announced profit after tax of Rs 891 million for year ended, December 31, 2011 as compared to Rs 176 million in 2010. Engro Foods’ revenue for 2011 recorded increase of 43% and stood at Rs 30 billion as compared to Rs 21 billion in 2010. It also announced an EPS of Rs 1.22 (basic & diluted for year 2011 as compared to EPS of Rs 0.31 in year 2010.

Engro Foods continued to consolidate its growth through the year and during first half of year, in May 2011, foods business raised Rs. 1.2 billion by issuing 48 million shares to institutional investors – mainly US & UK mutual funds – at a share price of Rs 25 per share. Its vision to enhance its footprint and pursue a focused growth strategy led to first-ever public offering of 27 million shares of business to general public at price of Rs 25 per share – inclusive of a premium of Rs 15 per share.

Company continued its aggressive business strategy of growth, diversification and achieved volume growth of 22% in 2011. Building on its promise of elevating consumer delight, business diversified into popularly priced, high quality product category with launch of Dairy Omung – a nutritious and affordable dairy product for lower income consumers. Innovation remained at core of business’s product expansion strategies this year. Board expressed confidence in strategic vision and direction of management and indicated clear signal to pursue long-term growth strategy by building inherent cost consciousness and product positioning for business.

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