Introduction to Business

Finance - 113387 Fall 2023

Muhammad Saad 65095
Sami-Ul-Haq 64867
Muhammad Hamza 64969
Saad Arshad 64871

Company Introduction

Who We Are
Fauji Foods Limited (Formerly Noon Pakistan Limited) was incorporated in
Pakistan on 26 September, 1966 as a Public Limited Company and its shares are
quoted on Pakistan Stock Exchange Limited.
FFL – Ordinary Shares

FFLNV – Non-Voting Ordinary Shares

In the private sector, Fauji Foods Limited (Formerly Noon Pakistan Limited) is the
first Company in Pakistan to operate a Spray Dryer for processing of milk powder.
At present, the Company is principally engaged in processing and sale of various
dairy products and juices with the brand name of Nurpur.

The Company is a member of Fauji Group of Companies and is being overseen and
managed by highly qualified, experienced, technical & business professional
Directors and Senior Executives.

The Head Office of the Company is situated at FFBL Complex, 103 A/B, Upper
Mall, Lahore and the Plant is located at Bhalwal, District Sargodha.

What we do

We at Fauji Foods Limited (Formerly Noon Pakistan Limited) are committed to

make sustainable efforts towards optimum utilization of its resources for the best
possible results for not only to safeguard the interests of all its stakeholders but
also to fulfill our obligation to serve the Community and to become a leading food
company in Pakistan maintaining the highest quality standards.

Building an excellent reputation over the last 45 years, Fauji Foods Limited
(Formerly Noon Pakistan Limited) continues to be at the forefront of quality
products. By the grace of God, it has achieved market leadership in several food
categories with a very strong portfolio consisting of Butter, Cheese, UHT Milk,
HCLF, Pasteurised Milk, Tea whitener, Flavoured Milk, Cream, Desi Ghee, Fruit
Juices, Honey and Jam.

How we do

Products are made with great area, and marked with our quality seal of
recognition. We undertake various rigorous quality control tests at all stages of
procurement / processing to ensure quality end products. All processes are
undertaken by employing state-of-the-art technology and equipment. Therefore,
we take pride in the fact that Fauji Foods Limited (Formerly Noon Pakistan
Limited) is recognized and appreciated by the Customers as one of the leading
Companies in Pakistan that are providing pure and quality products.
The Company has achieved a growth of 682.73% in turnover in a span of four
years i.e. turnover of the Company has grown from Rs.311.27 million in 2004 to
Rs.2,436.41 million in 2011, through a dedicated and experienced sales team.

It is a matter of great pleasure that our Organisation has won the most prestigious
and acclaimed brand recognition award “Brand of The Year 2006-07” in category
“Butter” & “Brands of The Year 2007-08” in categories “Butter, Cheese &
Flavoured Milk” & “Brand of The Year 2008-09” in category “Butter” & “Brand of
The Year 2010” in category “Butter, Cheese & Falvoured Milk”. This is just a
beginning and we are confident that our organization will strive continuously to
improve its brands performance to remain in the forefront of the dairy industry in
Pakistan. It is also a matter of great honour that our Organisation is the first Dairy
Company in Pakistan to be certified under ISO 22000:2005.

Ratio Analysis:
Ratio analysis is a helpful tool for assessing a company’s financial health and
progress over time. It involves analyzing five categories of ratios, including
liquidity, solvency, profitability, efficiency, and coverage. These ratios can give you
valuable insights into the company’s performance.

 Profitability Ratios

Unit 2021 2020

Gross Profit margin
EBITDA margin to sales
Pre-tax margin
Net Profit margin
Return on equity
Return on capital
employed
 Liquidity Ratios
% 10.73 0.84
% (0.23) (5.81)
% (17.89) (41.28)
% (14.59) (41.48)
% 35.54 (76.66)
% 12.89 127.81
 Unit 2021 2020
Return on assets Times (8.85) (26.06)
Current Ratio % 1.27 0.44
Quick / Acid test ratio Times 1.07 0.37

 Activity/ Turnover Ratios

Unit 2021 2020

Total assets turnover Times 0.61 0.56
Fixed assets turnover Times 1.01 0.96
Trade Debtors Rs. (000) 566,068 350,850
Debtors Turnover Times 19 28
Debtors turnover Days 19 13
Inventory Rs. (000) 707,587 543,983
Inventory turnover Times 12 7
Inventory turnover Days 30 50
Purchases Rs. (000) 6,577,469 5,866,287
Accounts Payables Rs. (000) 822,325 443,910
Creditors turnover Times 10 10
Creditors turnover Days 35 38
Operating Cycle Days 14 25

 Investments/Market Ratios
 Unit 2021 2020
Market value per share
-year end Rs 9.19 17.37
Breakup value-(No assets/share) RS 0.82 (6.51)
-excluding revaluation surplus Rs.(000) 1,299,875 (5,232,733)
-including revaluation surplus Rs.(000) 3,525,519 (3,989,009)
Earnings per share (pre-tax) Rs. (1.96) (3.91)
Earnings per share (after tax) Rs. (1.60) (3.92)
Earnings Growth % 59.26% 64.18%
Price earnings ratio % (5.27) (4.43)
Market Price to breakup % 11.20 (3.67)
Debt : Equity % 2.25 (3.64)
Interest cover % (3.96) (0.65)