KARACHI: Friesland Campina Engro Pakistan Limited (FCEPL) reported a 10.1 percent year-on-year increase in revenue to Rs88.4 billion for the first nine months of 2026, compared with Rs80.2 billion in the corresponding period last year, supported by product portfolio mix, market execution and brand investment.
The company said improved sourcing and manufacturing efficiencies contributed to a 400-basis-point expansion in gross margin and a 53.3 percent increase in operating profit over the same period last year.
However, the packaged milk sector continued to face challenges from the 18 percent sales tax imposed on ultra-high temperature (UHT) milk in July 2024. According to FCEPL, loose milk remains outside the tax net, widening the price gap and suppressing volumes in the formal dairy sector.
The company said it continued to engage with relevant government stakeholders to advocate for equitable taxation aligned with global benchmarks. It also highlighted the impact of the existing tax regime on farmer livelihoods and the documented dairy economy.
FCEPL said regional conflicts affected the operating environment during the third quarter of 2026, with higher freight and energy prices putting pressure on input costs and the broader value chain.
Domestically, inflation and policy rates continued to weigh on household purchasing power, affecting affordability and demand in the dairy category.
The company said it remained committed to hygiene, food safety and sustainability, drawing on its global expertise and 150-year heritage to provide dairy products to consumers across Pakistan.
Copyright Business Recorder, 2026
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