FCEPL Revenue Rises 10.1% To Rs88.4 Billion as 9M Profit Skyrockets To Rs6.46B
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✧ GENERATE BRIEFING
FrieslandCampina Engro Pakistan Limited (PSX: FCEPL) released its financial results for the nine-month period ended September 30, 2026, reporting a 10.1% year-on-year expansion in net revenue to Rs88.4 billion alongside a more than three-fold surge in bottom-line net profit to Rs6.46 billion (compared to Rs2.09 billion in 9M 2025).Key financial, operational, and macroeconomic performance highlights include:Gross Margin & Operating Expansion: Cost of sales rose by just 5% to Rs68.93 billion, propelling gross profit up 35% to Rs19.42 billion. Gross margins widened by 400 basis points to 22.0%. Operating profit spiked 53.5% to Rs10.67 billion.Debt Servicing Savings: Deleveraging efforts and lower borrowing rates drove a 58% plummet in finance costs to Rs 462.23 million (down from Rs1.10 billion in 9M 2025), lifting profit before tax (PBT) by 74% to Rs 10.21 billion.
FrieslandCampina Engro Pakistan Limited (FCEPL) reported a 10.1% year-on-year increase in revenue to Rs88.4 billion for the first nine months ended September 30, 2026, compared with Rs80.23 billion in the corresponding period last year.
The dairy giant’s profitability surged significantly during the period, with net profit after tax more than tripling to Rs6.46 billion (up 209%) from Rs2.09 billion in 9M 2025, according to financial statements reviewed by the board of directors.
Financial Performance Breakdown
Strong revenue growth combined with tight manufacturing cost controls expanded gross profit by 35% to Rs19.42 billion. Operating profit grew 53.5% to Rs10.67 billion, while basic and diluted earnings per share (EPS) jumped to Rs8.43 from Rs2.73.
| Financial Metric (PKR Billion) | 9M CY2025 (Sep 30, 2025) | 9M CY2026 (Sep 30, 2026) | Year-on-Year (%) |
| Net Revenue | Rs80.23 | Rs88.36 | +10.1% |
| Cost of Sales | Rs65.84 | Rs68.93 | +4.7% |
| Gross Profit | Rs14.39 | Rs19.42 | +35.0% |
| Operating Profit | Rs6.95 | Rs10.67 | +53.5% |
| Finance Costs | Rs1.10 | Rs0.46 | -57.9% |
| Profit After Tax (PAT) | Rs2.09 | Rs6.46 | +209.1% |
| Earnings Per Share (PKR) | Rs2.73 | Rs8.43 | +208.8% |
In the third quarter alone (Q3 2026), FCEPL generated net revenue of Rs29.49 billion, delivering a net profit of Rs2.07 billion (EPS: Rs2.69)—a 167% year-on-year increase over Q3 2025.
Cost Efficiencies and Debt Relief Drive Earnings
The company credited its revenue expansion to an optimized product portfolio mix, route-to-market enhancements, and selective brand marketing. Sourcing and manufacturing efficiency initiatives expanded gross margins by 400 basis points.
Below the operating line, FCEPL achieved massive balance sheet relief as finance costs tumbled 57.9% to Rs462.23 million (down from Rs1.10 billion in 9M 2025) due to reduced short-term debt reliance and lower benchmark interest rates. Net operating cash flow rose to Rs8.75 billion, strengthening total equity to Rs20.75 billion.
Packaged Milk Tax Distortions and Supply Chain Headwinds
Despite strong operational gains, management cautioned that Pakistan’s documented packaged-milk sector continues to face market distortions.
The 18% sales tax imposed on ultra-high-temperature (UHT) milk in July 2024 widened the retail price gap between packaged and loose, unpasteurized milk. FCEPL stated it continues to engage with federal tax authorities to advocate for equitable taxation, emphasizing that taxing packaged milk drives consumers toward unsafe, unstandardized loose milk while harming dairy farmer livelihoods.
Additionally, ongoing Middle East supply disruptions contributed to volatile global freight and energy costs during Q3, adding pressure to raw material imports. Management reconfirmed its commitment to drawing on parent group FrieslandCampina’s global dairy expertise to deliver safe, sustainable nutrition across Pakistan.
