AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Karachi: FrieslandCampina Engro Pakistan Limited (FCEPL) announced its financial results for the first quarter of 2025, revealing a 5.3% decline in net sales compared to the same period last year. The company attributed this downturn to the imposition of sales tax on UHT milk, which took effect on July 1, 2024, and has resulted in a shift in consumer preference towards loose milk.
Despite the challenging environment, FCEPL reported an improvement in profit after tax, reaching PKR 1,085 million, largely driven by reduced finance costs and optimized working capital. The company’s focus on cost optimization and operational efficiencies has allowed it to maintain a self-funding business model.
In the Dairy-Based Products segment, FCEPL saw a 9.1% decrease in revenue, totaling PKR 23.7 billion. This decline was primarily linked to the sales tax impact on UHT milk. Conversely, the Frozen Desserts segment experienced a substantial growth of 67.7%, with revenue reaching PKR 2.28 billion. This positive performance was bolstered by the occurrence of Eid during the first quarter.
Operating profit for the quarter increased by 12.8%, amounting to PKR 2,222 million, while earnings per share rose from PKR 0.87 to PKR 1.42. The company remains committed to advocating for tax reform in alignment with global standards to ensure fair competition with loose milk.
Drawing on its extensive dairy heritage, FrieslandCampina Engro Pakistan continues to prioritize quality, safety, and sustainability, aiming to provide safe and nutritious products to millions across Pakistan. The company reiterated its dedication to nourishing the nation amidst ongoing challenges in the formal dairy sector.