AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: FrieslandCampina Engro Pakistan Limited (FCEPL) reported its financial results for the third quarter ending September 30, 2025, revealing a 2.8 percent decline in net sales compared to the previous year. Despite this downturn, the company managed to improve its gross margins by 130 basis points, attributed to cost rationalization and an optimized product mix.
The company’s efforts to reclaim market volumes in the packaged milk category, which has been declining following the imposition of a sales tax last year, have seen partial success. A strategic campaign to strengthen brand equity was launched, utilizing television, digital, and in-store touchpoints. Investment in Olper’s Cream and Flavored Milk led to volume growth, even amid competition from established players.
In the frozen dessert sector, FCEPL achieved a 15 percent value growth year-on-year. The segment introduced innovative products at attractive price points, optimizing the product portfolio.
Financially, FCEPL reported an operating profit of Rs. 6,957 million, marking a 17.1 percent increase over last year, with operating profit as a percentage of sales rising from 7.2 percent to 8.7 percent. Profit after tax increased by 3.6 percent to Rs. 2,091 million, with the profit margin improving by 159 basis points. Earnings per share also saw an increase to Rs. 2.73 from Rs. 2.63.
Looking ahead, FCEPL highlighted the ongoing challenge posed by the 18 percent sales tax on packaged milk. The company called on the Pakistani government to reduce this tax, arguing that it would support public health, bolster farmer livelihoods, and enhance market competitiveness. FCEPL remains committed to delivering high standards of hygiene, food safety, and sustainability in its dairy products.