KARACHI: FrieslandCampina Engro Pakistan Limited (FCEPL) has announced its financial results for the quarter ended March 31, 2026, posting strong growth in sales and profitability driven by improved execution, brand investment, and operational efficiency.
Chairman, Higher Education Commission (HEC) Pakistan, visited Aror University of Art,
The company reported net sales of Rs 28.7 billion, up 10.4% compared to the same period last year. Operating profit rose sharply by 43% to Rs 3.17 billion, while profit after tax surged 70.6% to Rs 1.85 billion, with earnings per share increasing to Rs 2.41.
FCEPL said growth was supported by strengthened route-to-market strategies, selective brand investments, and continued focus on efficiency across its value chain.
The company highlighted ongoing challenges in the dairy sector due to the 18% sales tax on UHT milk, imposed in July 2024, which it said continues to distort competition between packaged and loose milk markets. It warned that this uneven taxation structure is suppressing formal dairy volumes.
Revenue from the Dairy-Based Products segment reached Rs 25.5 billion, showing an 8.2% increase, supported by marketing campaigns and stronger performance of value-added products, including the “Khalis Kay Rakhwalay” campaign for Olper’s UHT milk.
The Frozen Desserts segment recorded strong momentum with 31% growth, reaching Rs 3.2 billion, driven by product innovation and improved retail availability.
Management reiterated its focus on cost discipline, sustainability, and engagement with policymakers to address taxation concerns, stressing that the current regime impacts public health, farmer livelihoods, and the formal dairy economy.
The company also noted emerging geopolitical tensions in the Middle East as a potential risk factor for category demand and affordability.
FCEPL reaffirmed its commitment to delivering safe, high-quality dairy products while leveraging FrieslandCampina’s global expertise and dairy heritage to support Pakistani consumers and farmers.
