Fauji Foods Limited reported a 10 percent decline in consolidated net profit for the first quarter ended March 31, 2026, as rising operating expenses and lower secondary income weighed on earnings.
The company posted net profit of Rs301.59 million, down from Rs335.40 million in the same period last year, while earnings per share slipped to Rs0.12 from Rs0.13.
Despite weaker profitability, FFL’s net revenue rose 8 percent to Rs8.54 billion, supported by growth in sales. Gross profit also increased 9 percent to Rs1.54 billion.
However, margin gains were offset by rising costs, with marketing and distribution expenses jumping 21 percent and administrative expenses rising 5 percent, causing profit from operations to decline 5 percent.
The company also faced pressure from a 25 percent drop in other income, a 20 percent rise in finance costs, and a sharp increase in statutory levies, which surged 191 percent during the quarter.
These factors pushed profit before income tax down 12 percent, ultimately leading to lower bottom-line earnings despite a reduction in income tax expense.
Analysts say the results reflect persistent cost pressures in the consumer and dairy sector, even as revenue growth remains positive.
