FrieslandCampina Engro Pakistan Limited (FCEPL) reported a 10.1% rise in revenue for the first nine months of 2026, with operating profit growing 53.3% on the back of cost efficiencies and a stronger product mix.
Revenue for the period reached Rs88.4 billion, up from Rs80.2 billion in the same period last year. The company attributed the growth to a favorable portfolio mix, a focus on in-market execution, selective brand investment and route-to-market fundamentals.
Efficiency initiatives across sourcing and manufacturing lifted gross margin by 400 basis points compared with the corresponding period of 2025.
Tax disparity weighs on formal dairy
The company said the packaged milk market continues to operate on an uneven playing field. An 18% sales tax on UHT milk, imposed in July 2024, has left loose milk, which remains outside the tax net, with a widening price advantage and suppressed volumes in the formal dairy sector.
FCEPL said it has continued to engage government stakeholders to press for taxation aligned with global benchmarks. It argued the current regime harms farmer livelihoods and the documented dairy economy.
Cost and demand pressures
Regional conflicts continued to strain the operating environment in the third quarter. Higher freight and energy prices added pressure on input costs across the value chain.
Domestically, inflation and elevated policy rates continued to erode household purchasing power, affecting category affordability and demand, the company said.
Drawing on its global expertise and 150-year heritage, FCEPL said it remains committed to high standards of hygiene, food safety and sustainability, and to supplying safe, affordable and nourishing dairy products to millions of Pakistanis daily.