FrieslandCampina Engro Pakistan Limited (FCEPL) announced its financial results for the third quarter ended September 30th, 2025.
The packaged milk category continues to remain in decline post the imposition of sales tax last year. The company’s focused execution resulted in partially gaining back the volumes along with growing its market share. Whilst the revenue for the period is lower by 2.8% as compared to year to date period last year, the gross margins improved by 130bps due to cost rationalization and better product-mix.
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Campaign launched aimed towards strengthening brand equity and activated it across TV, digital & in-store touchpoints. Continued focus and investment on Olper’s Cream and Flavored milk resulted in volume growth despite competition from established players.
The Frozen Dessert category successfully delivered a 15% value growth since last year. The segment continued to introduce innovative offerings at attractive price points while optimizing the product portfolio.
FINANCIAL PERFORMANCE
The financial performance of the company for the period ending September 30, 2025, is summarized below:
| Nine months ended | Variation | ||
| (Rs. in million except EPS) | 2025 | 2024 | |
| Net Sales | 80,232 | 82,512 | -2.8% |
| Operating Profit | 6,957 | 5,941 | 17.1% |
| % of sales | 8.7% | 7.2% | +147 bps |
| Profit after tax | 2,091 | 2,019 | 3.6% |
| % of sales | 2.6% | 2.4% | +159 bps |
| Earnings per share (Rs.) | 2.73 | 2.63 | |
Future Outlook – 18% sales tax on packaged milk continues
Whilst the implementation of the 18% sales tax on packaged milk continues to be a challenge for the industry, FrieslandCampina Engro Pakistan has shown resilience, and persistently gained market shares. The company will keep bringing the best-in-class products to its consumers through relevant portfolios and cost rationalizations that will help enhance profitability and shareholder returns.
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FCEPL urges the Government of Pakistan to implement equitable taxation by reducing the sales tax on packaged milk. This critical step will help ensure a sustainable future for the packaged dairy industry. Moreover, this relief will help Safeguard Public Health by promoting access to safe, nutritious milk, support farmer livelihoods through continued investment in development programs and boost competitiveness by strengthening Pakistan’s position in domestic and international markets.
At FCEPL, we remain 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.
