FCEPL Revenue Rises 10.1% as Operating Profit Jumps 53.3% in 2026

FrieslandCampina Engro (FCEPL) Posts 10.1% Revenue Growth, Operating Profit Surges 53.3%

Karachi: FrieslandCampina Engro Pakistan Limited (FCEPL) has reported a 10.1% increase in revenue during the first nine months of 2026, reaching PKR 88.4 billion compared with PKR 80.2 billion in the corresponding period last year.

The company attributed its improved performance to a favorable product portfolio mix, stronger market execution, targeted brand investments and improvements in its distribution network. Operational efficiency initiatives across sourcing and manufacturing also contributed to a significant improvement in profitability.

FCEPL recorded a 400-basis-point expansion in gross margin, while operating profit increased by 53.3% year-on-year, reflecting the impact of its focus on cost management and operational performance.

Dairy Industry Faces Taxation and Affordability Challenges

Despite the company’s growth, Pakistan’s formal dairy sector continues to face structural challenges, particularly following the imposition of an 18% sales tax on ultra-high-temperature (UHT) milk in July 2024.

According to the company, loose milk remains outside the same tax framework, creating a price disparity that continues to put pressure on packaged milk sales and demand across the formal dairy industry.

FCEPL said it has maintained engagement with relevant government stakeholders to advocate for a more equitable taxation system in line with international benchmarks. The company also highlighted the potential consequences of the existing tax structure for dairy farmers and the documented dairy economy.

Regional Conflicts Add to Cost Pressures

The operating environment remained challenging during the third quarter of 2026, as regional conflicts contributed to uncertainty and put additional pressure on supply chains.

Higher freight and energy costs increased pressure across the value chain, adding to input expenses. At the same time, domestic inflation and prevailing policy rates continued to affect consumers’ purchasing power, creating further challenges for affordability and demand in the dairy category.

These pressures highlight the difficulties facing consumer goods companies as they seek to maintain growth while managing rising costs and price-sensitive consumer demand.

Commitment to Nutrition and Food Safety

Drawing on its global expertise and 150-year heritage, FrieslandCampina Engro Pakistan reiterated its commitment to maintaining high standards of hygiene, food safety and sustainability.

The company said it remains focused on providing safe, affordable and nutritious dairy products to millions of consumers across Pakistan.

FCEPL’s latest results highlight the contribution of portfolio management and operational efficiencies to its financial performance, even as taxation disparities, rising input costs and pressure on household budgets continue to shape the country’s dairy market.