Author Topic: EFOODS -- Engro Foods Limited  (Read 236958 times)

0 Members and 2 Guests are viewing this topic.

Offline Farzooq

  • Administrator
  • Sr. Member
  • *****
  • Posts: 18540
  • Thanks Received: 196
    • View Profile
Re: EFOODS -- Engro Foods Limited
« Reply #79 on: October 18, 2011, 11:38:13 AM »
EFOODS: 9MCY11 Result Preview

EFOODS will announce its 9MCY11 result on Oct 20'11. We expect the company to post consolidated NPAT of PkR342mn (EPS: PkR0.46) which would represent a growth of 15x YoY. We do not expect any dividend payout with the result. Topline is estimated to grow by an impressive 38%YoY to PkR21.6bn while we expect the company's operating profit to stand at PkR1.4bn.  For 3QCY11, we expect sequential earnings improvement with NPAT forecast to grow by 27%QoQ to PkR126mn (EPS: PkR0.17). EFOODS’ net revenues are forecast to grow by 10%QoQ to PkR7.9bn with revenues getting a further boost due to Ramzan. Gross margins are expected to remain flat sequentially at 21% while operating profits are forecast to grow by 7%QoQ to PkR504mn. Recent cut in discount rate bodes well for EFOODS where a 1% reduction in interest rates results in an earnings improvement of 5% for EFOODS over the CY12F-16F period. At current levels, we recommend Buy on EFOODS which presents a 16% upside to our target price of PkR28.5/share.

akd
TOP PICKS
Engro fatima ogdc ppl pol pso luck dgkc hubc kapco mcb nbp bafl atrl ptc nml ncl

Pakinvestorsguide

Re: EFOODS -- Engro Foods Limited
« Reply #79 on: October 18, 2011, 11:38:13 AM »

Offline kamal

  • Sr. Member
  • *****
  • Posts: 3047
  • Thanks Received: 37
    • View Profile
Re: EFOODS -- Engro Foods Limited
« Reply #80 on: October 18, 2011, 11:40:42 AM »
EFOODS: 9MCY11 Result Preview

EFOODS will announce its 9MCY11 result on Oct 20'11. We expect the company to post consolidated NPAT of PkR342mn (EPS: PkR0.46) which would represent a growth of 15x YoY. We do not expect any dividend payout with the result. Topline is estimated to grow by an impressive 38%YoY to PkR21.6bn while we expect the company's operating profit to stand at PkR1.4bn.  For 3QCY11, we expect sequential earnings improvement with NPAT forecast to grow by 27%QoQ to PkR126mn (EPS: PkR0.17). EFOODS’ net revenues are forecast to grow by 10%QoQ to PkR7.9bn with revenues getting a further boost due to Ramzan. Gross margins are expected to remain flat sequentially at 21% while operating profits are forecast to grow by 7%QoQ to PkR504mn. Recent cut in discount rate bodes well for EFOODS where a 1% reduction in interest rates results in an earnings improvement of 5% for EFOODS over the CY12F-16F period. At current levels, we recommend Buy on EFOODS which presents a 16% upside to our target price of PkR28.5/share.

akd

they Dont Expect any Dividend pay out..
iskai Offer Doc main likha hai kai Will not pay dividend initially ... dont remember no. of year. . :biggthumpup:
Realize Profit when and wherever u can. Coz its profit for which we are here for not marrying scrips. Fundamentals at KSE  weigh not more than 20-30%. Move with the moves of market. If u move against than u'll be loser and accumulating dividend only.

Offline M&M

  • Market Maker
  • Administrator
  • Sr. Member
  • *****
  • Posts: 4380
  • Thanks Received: 109
  • Who doesn't like chocolates and profits ?
    • View Profile
Re: EFOODS -- Engro Foods Limited
« Reply #81 on: October 20, 2011, 11:29:16 AM »
« Last Edit: October 20, 2011, 11:37:18 AM by M&M »
Follow the Index !
"The Action of the Market should be Reason Enough" - JLm
"The only true wisdom is in knowing you know nothing." - Socrates

Guidelines | Messages | SMC™ | Follow me

Online Poker Face

  • Value Investor
  • Global Moderator
  • Sr. Member
  • *****
  • Posts: 4881
  • Thanks Received: 75
  • A small investor hoping to make it big
    • View Profile
TOP PICKS : PSO PPL NML NCL MEBL ATBA TGL CSAP FECTC

Offline aliraza

  • Sr. Member
  • *****
  • Posts: 1670
  • Thanks Received: 17
    • View Profile
Re: EFOODS -- Engro Foods Limited
« Reply #83 on: October 26, 2011, 06:22:33 PM »
133 million shares of Engro Foods Supply Chain @ Rs. 10.64/-

not a good news for engro ab is topic ko engro ke tarf sa koi good news i gee fill hall ???????

Offline kamal

  • Sr. Member
  • *****
  • Posts: 3047
  • Thanks Received: 37
    • View Profile
Re: EFOODS -- Engro Foods Limited
« Reply #84 on: October 26, 2011, 06:26:27 PM »
133 million shares of Engro Foods Supply Chain @ Rs. 10.64/-

not a good news for engro ab is topic ko engro ke tarf sa koi good news i gee fill hall ???????

We r son innocent individuals ... kal ko ENGRO + 5 hojaiga ... tau hum " :banana:"," :shoaby:"," :goodc:" signs quote karna shroo hojaingay ... kuch log jau ajj engro khareedtay huay dar rahay hain jazbaat main aur khareedaingay ...

This is KSE >>....

Bus main baithana aur chaltee bas sai dhaka daidaina ... :biggthumpup:
Realize Profit when and wherever u can. Coz its profit for which we are here for not marrying scrips. Fundamentals at KSE  weigh not more than 20-30%. Move with the moves of market. If u move against than u'll be loser and accumulating dividend only.

Offline Farzooq

  • Administrator
  • Sr. Member
  • *****
  • Posts: 18540
  • Thanks Received: 196
    • View Profile
TOP PICKS
Engro fatima ogdc ppl pol pso luck dgkc hubc kapco mcb nbp bafl atrl ptc nml ncl

Online Poker Face

  • Value Investor
  • Global Moderator
  • Sr. Member
  • *****
  • Posts: 4881
  • Thanks Received: 75
  • A small investor hoping to make it big
    • View Profile
Re: EFOODS -- Engro Foods Limited
« Reply #86 on: October 26, 2011, 11:15:05 PM »
http://engro.com/wp-content/themes/engro-v1.0/pdf/BriefingQ32011.pdf
icecream ne bajai hui hai EFOODS ki

My idea is to aggressively advertise OMORE with beautiful stylish female models
Many people will start eating its icecream.
TOP PICKS : PSO PPL NML NCL MEBL ATBA TGL CSAP FECTC

Offline Farzooq

  • Administrator
  • Sr. Member
  • *****
  • Posts: 18540
  • Thanks Received: 196
    • View Profile
Re: EFOODS -- Engro Foods Limited
« Reply #87 on: November 03, 2011, 12:43:38 PM »
Engro Foods (EFOODS): Re-evaluating the Sale of
Rice Business

In yesterday’s In Focus, we revised our Dec11 Target Price (TP) for Engro Foods
(EFOODS) downwards to PKR28/share. However, our estimate for proceeds due
to EFOODS’ sale of its rice business (to sister company Engro Eximp) was
misinterpreted.
Having re-visited our model, we have revised our CY11E-CY12E earnings
forecasts for EFOODS to PKR544mn and PKR1,157mn respectively. This
translates to a Dec11 TP of PKR34.7.
We continue to have a BUY stance on EFOODS based on its expanding market in
key UHT milk segment, and on inherent strength of FMCG sector that promises
swift growth amid rising consumerism driven by favorable demographics.

bma
TOP PICKS
Engro fatima ogdc ppl pol pso luck dgkc hubc kapco mcb nbp bafl atrl ptc nml ncl

Offline Farzooq

  • Administrator
  • Sr. Member
  • *****
  • Posts: 18540
  • Thanks Received: 196
    • View Profile
Re: EFOODS -- Engro Foods Limited
« Reply #88 on: November 18, 2011, 12:27:47 PM »
Engro Foods Limited (EFOODS) reported earnings of Rs408mn (EPS Rs0.54) in 9M2011 compared to a PAT of Rs35mn (EPS Rs0.05) last year. The earnings remained largely inline with our expectations. The growth was derived from the dairy and juices segment, which gained 5ppts in market share to 44% by September 2011 since December 2010. Its ice cream business also supported the top-line of the company with enhanced revenues coming in from the launch in Karachi (revenues up 64%YoY to Rs2.2bn). However, higher marketing and advertisement expenses kept the ice cream business in the red. In another development, the company parted with its 70% owned subsidiary (Engro Foods Supply Chain) which was suppose to overlook the rice business. At current levels, the stock offers a potential upside of 30% to our target price of Rs34. Hence, we maintain our ‘Buy’ call on it.

Dairy and juices deriving the growth

Dairy and juices segment reported hefty profit after tax of Rs804mn in 9M2011, an increase of 84%YoY. Revenues of the segment augmented to Rs19.4bn led by growth in both volumes (20%YoY) and prices (up 18%YoY). UHT sales grew mainly on account of higher sales of its tea whitener (Tarang) and the launch of its new milk Dairy Omung, catering to budget conscious society of the country. EFOODS maintained its market leader status in the UHT segment with a share of 44% (up 5ppts since December 2010).
 
Ice cream: Market expenses suppress earnings

Omore witnessed an increase of 45%YoY in its volumetric sales as it was introduced in Karachi (catering to 27% of the total ice cream market in Pakistan ) in 1Q2011. As a result, segmental revenues soared by an impressive 64%YoY to Rs2.2bn during 9M2011. However, EFOODS’s continued investment in its brand and cold storage chains restricted the growth in the cumulative bottom line. The segment reported a loss of Rs285mn during the period under review versus a loss Rs293mn in 9M2010.
 
Management more focused on core business

As part of company’s plans to focus more on the core business, the company sold off its 70% stake in Engro Foods Supply Chain to Engro Eximp which already owned the 30% of the stake. The subsidiary is a rice processing facility at Muridke. The transaction was valued at a fair price of Rs10.64 per share generating a one time gain of Rs51mn (Rs0.06 per share) on the bottom line of the company.

Recommendation: ‘Buy’ maintained

With a more focused approach and expectation of 1) ice cream business turning into profits by next year, 2) growth in the untapped packaged milk segment with introduction of new products like Dairy Omung - low priced packaged milk aimed to compete against loose milk and 3) launch of new variants in the juices segment, we remain bullish on the stock. It offers a potential upside of 30% to our target price of Rs34 and we maintain our ‘Buy’ call.

  jsgcl
TOP PICKS
Engro fatima ogdc ppl pol pso luck dgkc hubc kapco mcb nbp bafl atrl ptc nml ncl

Offline Farzooq

  • Administrator
  • Sr. Member
  • *****
  • Posts: 18540
  • Thanks Received: 196
    • View Profile
Re: EFOODS -- Engro Foods Limited
« Reply #89 on: December 15, 2011, 09:59:25 AM »
High demand: Engro Foods to invest in ice cream distribution channel
By Farooq Baloch

Published: December 15, 2011

 Local conglomerate’s subsidiary facing difficulties in supply chain. CREATIVE COMMON

KARACHI: 
Engro Foods is likely to continue investing, particularly  in its ice cream segment’s distribution network which has been facing difficulties, according to the company’s top official. The company is targeting revenue of Rs32 billion in fiscal 2012 and believes earnings per share can double by the end of 2012.
 
“There is no need to reduce investment at this time,” CEO Afnan Ahsan said in an interview with The Express Tribune. “We have been in investing mode for a while, now it’s time to reap the benefits,” he added.
 
The newly appointed chief – who has served in multinationals like Coca-Cola, Pepsi and Nestle over a span of 20 years – is hoping to take Engro Foods a step forward and make it the largest business of its parent company Engro Corporation by the end of 2012.
 
The food’s arm has caught up with the stalwart fertiliser wing and is neck-and-neck revenue-wise, according to the third quarterly account of the conglomerate.
 
It’s been five years of stellar performance, Ahsan said while talking about the company’s revenue reaching Rs28 billion in 2010. “Engro Foods is already doing great; my focus will be to take it a step further,” he added.
 
Engro Foods has successfully grabbed 45% of the market share in ultra-high temperature goods particularly its packaged milk Olpers and continues to thrive in its dairy segment which Ahsan point out as its prime sector.
 
However, the local conglomerate’s subsidiary has been facing difficulties in building a distribution channel for the ice cream segment.
 
Revenue for the ice cream segment – that has 24% market share – grew by 64%, although it incurred a net loss of Rs285 million in the first nine months of 2011. The company’s bottom-line is in the negative zone due to the heavy distribution and marketing expenses that amounted to Rs2.6 billion from January to September this year.
 
Talking about heavy marketing and distribution expenses, the 42-year-old said these expenses reflect the company’s investments to build infrastructure and market distribution channel.
 
The subsidiary ran a nationwide advertisement campaign in 2009 when the product was launched despite the fact that it was only available in a few specific cities of Punjab. The company enticed Karachiites with advertisement as the ice cream was not launched in the city until April 2011.
 
A lot of raw material supply is in Punjab and could also be a reason to target that market first, Ahsan said.
 
Ice cream business is still new, Ahsan said, deploying freezers alone takes lots of investments. The company has deployed 20,000 freezers in less than two-and-a-half years, he said. “We have been investing heavily and lots of these investments will now start paying dividend,” he said.
 
The company has faced difficulties in establishing a proper distribution channel for its ice cream brand Omore.
 
The product’s demand was much quicker than its supply in Karachi as recently some grocery stores ran out of Omore’s stock.
 
The company ran into a similar situation on Eid when demand shot up, Ahsan said. Admitting the company is facing difficulties on distribution side, the CEO said it will likely to continue investing on this front – hinting that the company might look for acquisitions.
 
“We are having difficulty in terms of expanding our distribution network in Karachi as we have just one distributor in the city,” Ahsan said.
 
Omore is produced in Sahiwal and shipped to Karachi, he said while highlighting that there is no production unit in the consumer hub. “I will not rule out acquiring any facility which can benefit the business,” he said.
 
Engro Foods has a dairy plant in Sukkur but that is working on full capacity and can’t be expanded, Ahsan said, so it makes sense to have a production unit in Karachi. “There are several assets available in Karachi and we’ll explore all possibilities,” he added.
TOP PICKS
Engro fatima ogdc ppl pol pso luck dgkc hubc kapco mcb nbp bafl atrl ptc nml ncl

Offline Farzooq

  • Administrator
  • Sr. Member
  • *****
  • Posts: 18540
  • Thanks Received: 196
    • View Profile
Re: EFOODS -- Engro Foods Limited
« Reply #90 on: December 19, 2011, 10:34:39 AM »

Engro Foods believes in innovation, says CEO
 December 19, 2011
RECORDER REPORT

 BR research: Dairy being your core segment - how do you see its potential in Pakistan?


Afnan Ahsan: The milk industry has great prospects for growth.

Packaged milk only has around 10 percent market share.

There are logical expansions in the raw-material source, but collection of those raw materials is very difficult in Pakistan because the agriculture sector is disorganised.

BRR: How large is your dairy collection chain and where it s it located?

AA: We are situated in central and southern Punjab primarily and in some areas of Sindh as well.

We have a dairy farm which has around 2300 cattle and is one of the largest in Pakistan.

The farm has been there around for 2-3 years and accounts for 4 percent of our milk produce.

BRR: How do you manage these farms?

AA: We have a total of 35,000 farmers who are directly linked to and bring milk to our collection centers.

Our village milk collectors have direct access to all these farmers - we call them strategic dairy farmers.

This is a backyard industry.

A large number of these farmers are very small; possessing just two to three cows.

We did not need to reinvent the wheel as Nestle has been in the business for 32 years.

Any successful dairy industry relies on co-operatives as a basic infrastructure, but in Pakistan we are very far on that.

BRR: Your recent quarterly financial results depict a sizeable increase in cost of sales.

What is the chief reason behind it?

AA: The primary reason was the ice-cream segment as we recently launched in Karachi, roughly 9,000 freezers were injected in the Karachi market alone and the wholesale infra-structure was built from scratch.

Even though our expenses are growing we are still making investments.

If we compare our sales to Nestle, their expenses last year were around 7.2 percent, Engro's are 3.1 percent.

It's a pure distribution and infrastructure business.

Our penetration is in 120 towns.

We are still at a very basic stage relying primarily on a wholesale network for a deeper penetration in the rural market.

It's not by accident that this company has, in five years, gone from zero to Rs30 billion.

It's an aggressive company and one of the most successful corporate entities in Pakistan.

BRR: How are your different brands performing in the market?

AA: Tarang is our largest brand, in revenue and distribution terms.

This has allowed us to make it the most deeply penetrated and widely distributed brand.

It's the largest revenue contributor to the overall portfolio.

But we have made Olpers available at a very affordable price, and we have tried to bring innovation in the industry through this.

Olpers obviously is placed in higher socio-economic strata and hence probably a fairly high price point.

Omore ice-cream is just in the beginning stage.

We currently have 24 percent of the ice-cream market share.

But that is in a monopoly market which is commendable.

BRR: Are you un-tapping the ice-cream market or just breaking into your competitors share?

AA: At this point in time we've just broken into the market.

The entire sector has faced slow growth due to losses incurred by load-shedding, but that's a sectoral thing.

We still need to work more on the infrastructure.

BRR: What are the prospects for Safa Foods which the company acquired recently?

AA: The prospects look promising; it is a huge industry in North America which is close to a billion dollar.

My aim would be to make Pakistan a major supply-line.

For a Middle Eastern producer, "Made in Pakistan" is a taboo, and we need to break through the taboo, and I personally believe Engro is the right platform to do so.

BRR: What is the room for packaged ice cream market in Pakistan?

AA: Incidence of packaged ice-cream in Pakistan is almost negligible.

The packaged industry needs to consider localising ice-cream as what we are currently selling is very western.

BRR: What is the company doing to take on competitors?

AA: One of the things which we have brought is organising the sector much faster than our competition.

We have home deployed initiatives like EMAN (Engro Milk Automation Network).

Every collection center that we have has POS device and every single farmer has an EMAN card.

We are also looking at livestock management where we bring women from rural areas in Sindh and train them in livestock management.

We put them in contact with fertilisers, as well as with veterinarians.

These women are supporting cattle farmers and us.

Our plan has been to be more productive with our current base.
TOP PICKS
Engro fatima ogdc ppl pol pso luck dgkc hubc kapco mcb nbp bafl atrl ptc nml ncl

Online Poker Face

  • Value Investor
  • Global Moderator
  • Sr. Member
  • *****
  • Posts: 4881
  • Thanks Received: 75
  • A small investor hoping to make it big
    • View Profile
Re: EFOODS -- Engro Foods Limited
« Reply #91 on: December 27, 2011, 08:15:01 PM »
1 million volume!
TOP PICKS : PSO PPL NML NCL MEBL ATBA TGL CSAP FECTC

Online umar

  • Janta
  • *
  • Posts: 142
  • Thanks Received: 4
    • View Profile
Re: EFOODS -- Engro Foods Limited
« Reply #92 on: December 30, 2011, 03:03:41 PM »
hypothetically, what will happen to the share price of EFOODS if engro decides to sell it?
Holding Efoods, KSBP, FECTC, KOHC, MLCF, NML, SAZEW, SLYT, TGL, PTCL

Offline JAWAD

  • Active Members
  • ***
  • Posts: 487
  • Thanks Received: 2
    • View Profile
Re: EFOODS -- Engro Foods Limited
« Reply #93 on: December 30, 2011, 03:52:36 PM »
in my opinion it would shoot towards north but it is very unlikely that engro decide to sell it ...!!!

Offline Koolfire

  • Day Traders
  • **
  • Posts: 215
  • Thanks Received: 2
    • View Profile
Re: EFOODS -- Engro Foods Limited
« Reply #94 on: January 16, 2012, 10:39:33 PM »
Failure Is Only a Temporary Change in Direction To Set You Straight For Your Next Success...Only Those Who Dare To Fail Greatly Can Ever Achieve Greatly...

Offline AlK

  • Day Traders
  • **
  • Posts: 202
  • Thanks Received: 7
    • View Profile
Re: EFOODS -- Engro Foods Limited
« Reply #95 on: January 17, 2012, 11:22:36 AM »
What are the expected results for Efoods?

Offline 007

  • Sr. Member
  • *****
  • Posts: 7090
  • Thanks Received: 57
    • View Profile
Re: EFOODS -- Engro Foods Limited
« Reply #96 on: January 17, 2012, 11:23:33 AM »
almost upper lock

Offline kamal

  • Sr. Member
  • *****
  • Posts: 3047
  • Thanks Received: 37
    • View Profile
Re: EFOODS -- Engro Foods Limited
« Reply #97 on: January 17, 2012, 11:25:14 AM »
almost upper lock

Payout kuch nahee hoga kiunkai as per offer doc 1st five years kai liay no payout . Abb bhalay EPS kaiscc bhee ho.
Realize Profit when and wherever u can. Coz its profit for which we are here for not marrying scrips. Fundamentals at KSE  weigh not more than 20-30%. Move with the moves of market. If u move against than u'll be loser and accumulating dividend only.

Offline AlK

  • Day Traders
  • **
  • Posts: 202
  • Thanks Received: 7
    • View Profile
Re: EFOODS -- Engro Foods Limited
« Reply #98 on: January 17, 2012, 12:57:36 PM »
almost upper lock

But with a very low turnover