FrieslandCampina Engro Pakistan Limited (FCEPL) reported a profit of Rs2.691 billion for the year ended December 31, 2025, marking a 22% increase compared to 2024. This growth came despite a slight decline in net sales across its product portfolio.
The company attributed its strong performance to cost optimization and efficiency initiatives across procurement, manufacturing, logistics, and overheads. Improved commercial execution and disciplined cost management led to a 70-basis-point expansion in gross margin and 16% growth in operating profit compared to last year.
FCEPL continues to face challenges from the 18% sales tax on packaged UHT milk, which creates an uneven playing field with loose milk and limits investment in category development and dairy sector initiatives. Despite these challenges, the company strengthened its brands, improved volume mix, and maintained consumer trust in product safety and quality.
Looking ahead, FCEPL plans to focus on affordability, cost efficiency, and supply chain optimization while reinforcing its position in the organized dairy sector and supporting sustainable development in the dairy industry.