9-month FCEPL revenue soars 10.1pc to Rs88.4bn YoY

Friesland Campina Engro Pakistan Limited (FCEPL) reported a substantial 10.1 percent year-on-year revenue growth to Rs88.4 billion for the first nine months of 2026, compared to Rs80.2 billion in the same period last year. This surge in revenue was driven by an improved product portfolio mix, effective market execution, and substantial brand investment.

The company attributed its enhanced gross margin to 400 basis points to better sourcing and manufacturing efficiencies, coupled with a remarkable 53.3 percent increase in operating profit compared to the same period in 2025. However, FCEPL faced ongoing challenges within the packaged milk sector, notably the 18 percent sales tax imposed on ultra-high temperature (UHT) milk in July 2024.

This tax burden, which does not apply to loose milk, has widened the price gap and limited volumes in the formal dairy sector. FCEPL expressed its commitment to engaging with government stakeholders to advocate for fairer taxation in line with global standards, while also addressing the impact of the current tax regime on both farmer livelihoods and the dairy economy as a whole.

The company cited regional conflicts as another factor affecting operating conditions during the third quarter of 2026, with increased freight and energy costs placing additional pressure on input costs and the broader supply chain. Domestically, inflation and policy rates continued to dampen household purchasing power, affecting affordability and demand for dairy products.

Despite these challenges, FCEPL remained steadfast in its dedication to maintaining high standards of hygiene, food safety, and sustainability. Leveraging its global expertise and 150-year heritage, the company strives to provide premium dairy products to consumers across Pakistan.