FCEPL 2025 Results: Profit Jumps 22% to Rs 2.69 Billion Despite Sales Tax Hurdles. -

FrieslandCampina Engro Pakistan Limited (FCEPL) has demonstrated strong financial resilience in 2025, reporting a 22% jump in profit after tax to reach Rs 2.69 billion, up from Rs 2.2 billion the previous year. This growth was achieved despite a challenging fiscal environment and a 2% decline in revenue, which fell to Rs 104.45 billion.

2025 Financial Performance Highlights

Profitability: Earnings per share (EPS) rose to Rs 3.51 from Rs 2.87. The company also declared a final dividend of Rs 3.5 per share.
Operational Efficiency: Operating profit grew by 16% to Rs 7.94 billion. This was driven by disciplined cost management, which more than offset the modest decline in revenue.
Gross Margins: Despite lower sales, the gross profit margin improved slightly to 16.7% (from 15.9%), reflecting better pricing discipline and cost optimization.
Financial Relief: A significant driver of the bottom-line improvement was a 64% drop in finance costs, which plummeted to Rs 1.18 billion from Rs 3.26 billion in FY2024.

Key Market Challenges

Taxation Impact: The company noted that net sales were impacted by the 18% sales tax on packaged milk, which has reduced affordability and hindered category growth.
Uneven Playing Field: FCEPL highlighted that the tax regime creates an unfair advantage for the loose milk sector, which remains untaxed and outside of formal safety frameworks.
Subdued Demand: Total revenue decline was attributed to subdued consumer demand and a highly competitive market environment.

Disclaimer: This post is for informational and journalistic purposes based on the company’s official financial reports. Financial data and market projections are subject to change based on economic conditions and government policy shifts. Please consult official financial sources for detailed investment information.