Engro Foods, the Pakistani subsidiary of FrieslandCampina, had a good first quarter. The company turned over 20% more in turnover than in the same period last year and saw its profits in rupees rise even more. Expressed in euros, it's a different story.
The continued decline in the rupee rate reversed much of the progress made. The Pakistani rupee is one of the world's worst performing currencies, losing around 12% of its value last year alone. Between August 2018 and the end of last year, the currency even fell in value by 30,5%.
FrieslandCampina Engro Pakistan Limited (FCEPL), as the company is called in full, managed to perform well by cutting costs and launching a series of new products. Expressed in euros, turnover for the first quarter amounted to approximately €69 million, while profit amounted to €3,3 million. The largest division, that of dairy and drinks, has a turnover of 63 million, the ice cream division almost €6 million. This last branch of the company achieved the fastest growth.