- Engro Foods

Financial Performance of Engro:

Based on the financial results of company’s 2018 years, they posted a consolidated profit-after-tax
of PKR 11,055 million – up by 65%, while PAT attributable to the shareholders increased to PKR
6,091 million from PKR 3,777 million during comparative period last year.

Engro Corporation concluded the first half of 2018 with revenue of PKR 71,733 million – 37%
higher than PKR 52,241 million for the similar period last year. Increase was primarily driven by
improved fertilizers and petrochemicals performance.

On a standalone basis, the Company posted a PAT of PKR 3,773 million against PKR 4,105
million for the similar period last year, translating into an EPS of PKR 7.20 per share (higher PAT
in the previous period was due to the one-off super dividend from Engro Foods). Company’s sales
growth have been increasing for the last few years and for now it is 42.6%.

- Return on Investment: 5.70%

- Return on Equity: 12.31%
- Sales Growth: 42.6%
- Profitability: 2.1% of total
- Return on Investment:
Operational Performance:
- Our Independence and Quality Control

The company compiled with the independence and other ethical requirements of the Code of the
Ethics for their employees, which are founded on the principles of integrity, objectivity,
professional competence and due care, confidentiality and professional behavior.

The firm follows the International Standard on Quality Control 1 "Quality Control for Firms That
Perform Audits and Reviews of historical Financial information, and other Assurance and Related
Services Engagements" and accordingly maintains a system of quality control including
documented policies and procedures regarding compliance with ethical professional standards and
applicable legal and regulatory requirements.

Engro is first company in Pakistan to implement ‘Six Sigma’ across all areas and utilizing it as a
management system to execute all strategies.

Marketing Performance:
Engro foods have been dominating with a market share of 45 percent in dairy products. The market
reach is in 300 cities of Pakistan, 18 states of America and 4 provinces of Canada. For all the
products, Engro foods set sales target twice a month and their marketing strategies are so
consumer-centric that they vary accordingly. In order to achieve more competitive advantage,
Engro foods uses differential strategies by differentiating their products. Engro foods differentiate
themselves in terms of taste, quality and availability of their products. Revenues reflect an increase
in demand for the Company's products and services which ultimately lands us on a conclusion that
customers are satisfied with the company’s products.

They have been on the way of innovation and only Engro food limited has the third generation
UTH milk plant in the country which uses bacto-fuge technology to eliminate virtually the
bacteria’s and ensure premium quality and health. They have state of art technology which helps
them process 900,000 liters of milk per day.

Company believes in indulging all the employees to enhance the productivity as they welcome all
of them for ideas and suggestions.