Foreign food giants post strong sales despite war
KARACHI: Although foreign food giants operating in Pakistan maintained a cautious outlook for the current year in view of the ongoing US-Iran war since Feb 28, their sales during the first six months of 2026 remained relatively strong despite a decline in profit after tax (PAT). In their financial statements, the companies appeared concerned over shipment delays and fuel prices, which may…
Karachi, Pakistan has seen strong sales from foreign food giants despite the ongoing US-Iran war since February 28, 2026. Despite a decline in profit after tax (PAT), these companies reported robust performance during the first six months of 2026.
Nestle Pakistan Limited (NPL) reported net sales of Rs107 billion, marking a 5.7 percent increase from the previous year. However, PAT declined by 4.3 percent to Rs9.9 billion. Despite rising fuel and energy prices, Nestle successfully sustained its business momentum through increased investment in its brands, consumer-centric innovations, and marketplace execution. They also focused on route-to-market for exports and disciplined pricing when necessary.
FrieslandCampina Engro Pakistan Limited (FCEPL) saw a 12.1 percent revenue growth, reaching Rs60 billion in the first half of 2026, compared to Rs52.5 billion in the same period last year. This increase was primarily due to a favorable portfolio mix, emphasis on in-market execution, selective brand investment, and route-to-market fundamentals. Efficiency initiatives across sourcing, manufacturing, and distribution led to a significant expansion in gross margin and operating profit growth.
Fauji Foods Limited (FFL) recorded its highest-ever revenue of Rs12.77 billion in the first half of 2026, a 12.6 percent increase from the same period in 2025. However, PAT fell to Rs560 million from Rs734 million in the same period last year. The company expects this decline in PAT to recover as planned interventions take effect during the remainder of the year.
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