KARACHI: Engro Foods Limited announced profit after tax at Rs891 million for the year ended December 31, 2011, up by 407 per cent over Rs176 million earned the previous year.

The figures translated into earning per share (eps) at Rs1.22 (basic and diluted) for the year 2011 as compared to eps of Re 0.31 in 2010.

The company’s revenue for 2011 recorded an increase of 43 per cent to Rs30 billion compared to Rs21 billion in the 2010. The company contended that “Engro Foods continued to consolidate its growth through the year and during the first half of the year, in May 2011, the foods business raised Rs1.2 billion by issuing 48 million shares to the institutional investors mainly the US and UK mutual funds at a share price of Rs25 per share.” Regarding sector-wise performance, the company noted that in dairy, Engro Foods had continued its aggressive business strategy of growth and diversification and achieved volume growth of 22 per cent in 2011.In the juices and nectars’ segment, the ‘Olfrute’ registered a volume growth of 236 per cent in 2011. In the ice cream and frozen desserts segment, ‘Omore’ volume increased by 43 per cent in 2011.

In respect of ‘Engro Foods Canada’, the company mentioned that Engro Corp – the parent company – acquired Al-Safa – a leading halal meat brand in North America at a total cost of $6.3 million in April 2011.

During the first 8 months of operations (since the acquisition) till December 31, 2011, Al-Safa brand sales were $5.3 million and the operational loss was $1.2 million including the pre-commencement cost of $0.33 million.

Honda Atlas The company posted loss after tax amounting to Rs143 million for the nine-months to December 31, 2011 (9MFY12). The loss in the comparable period of the previous year stood at Rs276 million. Those translated into loss per share (LPS) at Re1 for the current term compared to Rs1.93 for the previous similar nine months.

Muhammad Sarfraz Abbasi, analyst at Summit Capital (Pvt) Limited stated that the loss was “due to decline in production and volumetric sales of the company”.

During the 9MFY12 total production of the company declined by 16 per cent over the same time last year (YoY) to 9,900 units, from 11,728 units in the same period last year.

Sales of Honda Atlas Cars declined 9 per cent YoY in terms of volume to 10,233, from 11,185 units in 9MFY11. The biggest decline was experience in sales of HONDA Civic by 19 per cent YoY to 3,840 units in 9MFY 12, from 5,036 units sold in same time last year.  Sales of the Honda City showed a modest decline of one per cent YoY.

“Despite the growth of 165 per cent in ‘other income’ and 18 per cent lower ‘financial charges’, a hefty 104 per cent increase in ‘other operating costs’ to Rs195 million, led the company to run into losses.