FCEPL Posts Strong Q3 Amid Tax Pressures, Renews Call for Relief on Packaged Milk

KARACHI — FrieslandCampina Engro Pakistan Limited (FCEPL) has announced its financial results for the third quarter ended September 30, 2025, showcasing operational resilience and margin improvements despite industry-wide challenges.

The packaged milk category continues to face pressure following the imposition of an 18% sales tax last year. Despite the setback, FCEPL’s focused execution strategy helped the company regain some lost volume and improve its market share. Net sales for the nine-month period stood at Rs. 80.23 billion, showing a slight decline of 2.8% compared to Rs. 82.51 billion in the same period last year.

However, the company posted a 17.1% increase in operating profit, reaching Rs. 6.96 billion, with a margin expansion of 147 basis points. Profit after tax also rose by 3.6% to Rs. 2.09 billion, up from Rs. 2.02 billion in 2024. Earnings per share increased to Rs. 2.73 from Rs. 2.63.

FCEPL attributed its improved margins to cost rationalization and an improved product mix. The company also launched a brand campaign activated across TV, digital platforms, and in-store touchpoints, aiming to strengthen brand equity.

Key categories such as Olper’s Cream and Flavored Milk experienced volume growth despite strong competition. Meanwhile, the Frozen Dessert segment delivered an impressive 15% value growth, supported by innovative offerings at competitive prices.

Future Outlook: Advocating for Policy Reforms

While the high sales tax continues to impact industry dynamics, FCEPL reaffirmed its commitment to delivering best-in-class products and enhancing shareholder value through efficient portfolio management and cost control.

The company also renewed its call for the Government of Pakistan to reduce sales tax on packaged milk, citing the need for equitable taxation to ensure the sustainability of the dairy sector. FCEPL emphasized that tax relief would not only support public health by improving access to safe and nutritious milk but also benefit farmers and enhance Pakistan’s competitiveness both locally and internationally.

“At FCEPL, we remain committed to the highest standards of hygiene, food safety, and sustainability while delivering safe, affordable, and nourishing dairy products to millions of Pakistanis every day,” the company stated.

FrieslandCampina Engro Pakistan continues to play a vital role in the dairy ecosystem, offering value to consumers, supporting local farmers, and contributing to the country’s economic development amidst a tough regulatory environment.