FrieslandCampina Engro Pakistan Limited (FCEPL) announced its financial results for the first quarter ended 31st March 2026. The Company has witnessed net sales growth of 10.4% to PKR 28.7 billion versus the same period last year. The growth was driven by in-market execution, selective brand investment and route-to-market fundamentals supporting the Company’s commercial performance during the quarter.
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The packaged milk market continues to operate below its pre-tax levels, driven by the 18% sales tax imposed on UHT milk in July 2024. The uneven playing field versus loose milk, which remains outside the tax net, continues to suppress volumes in the formal dairy sector.
The Company maintained its focus on cost discipline and operational efficiency across the value chain, resulting in gross margin increase and continued to actively engage with relevant government stakeholders to advocate for equitable taxation, underscoring the adverse impact of the current tax regime on public health, farmer livelihoods, and the documented dairy economy.
Emerging geopolitical tensions in the Middle East from March 2026, have introduced uncertainty that will weigh heavily on category affordability and demand
DAIRY-BASED PRODUCTS SEGMENT
Revenue from the Dairy-Based Products segment stood at PKR 25.5 billion, representing a 8.2% growth compared to the same period last year. The Company maintained investment behind the ‘Khalis Kay Rakhwalay’ campaign for Olper’s UHT across TV, digital, PR, and in-store touchpoints, reinforcing the brand’s purity credentials with consumers. Value added portfolio’s contribution also increased compared to same period last year.
FROZEN DESSERTS SEGMENT
The Frozen Desserts segment recorded strong growth momentum, achieving 31% revenue growth and reaching PKR 3.2 billion versus last year’s 2.5 billion. This performance was driven by Bricks renovations, including 600ml plain variants and Festive Value-Added Bricks and Tubs.
FINANCIAL PERFORMANCE
The financial performance of the company for the period ending March 31, 2026, is summarized below:
| Three month ended | Variation | ||
| (PKR Million) | 2026 | 2025 | |
| Net Sales | 28,722 | 26,016 | +10.4% |
| Operating Profit | 3,177 | 2,222 | +43% |
| % of sales | 11.1% | 8.5% | +260 bps |
| Profit / (Loss) after tax | 1,851 | 1,085 | +70.6% |
| % of sales | 6.4% | 4.2% | +220 bps |
| Earnings / (Loss) per share (Rs.) | 2.41 | 1.42 | |
FUTURE OUTLOOK
The 18% sales tax on packaged UHT milk remains a structural challenge for the formal dairy sector, suppressing volumes and sustaining the price gap with unregulated loose milk. The Company remains engaged with relevant stakeholders to advocate for equitable taxation. The Company will continue to monitor regional uncertainty and respond in a manner that is best for its consumers and farmers, while delivering value to its shareholders.
Drawing on FrieslandCampina’s global expertise and over 150 years of dairy heritage, FCEPL remains committed to the highest standards of hygiene, food safety, and sustainability, while providing safe, affordable, and nourishing dairy products to millions of Pakistanis, every day.