FrieslandCampina Engro Pakistan Limited (FCEPL) achieved revenue growth of 10.1% during the first nine months of 2026 over the same period last year. Revenue reached PKR 88.4 billion compared to PKR 80.2 billion last year.
FrieslandCampina Engro Q3 2026 Results
This performance was driven by favorable portfolio mix, emphasis on in-market execution, selective brand investment and route-to-market fundamentals. Alongside strong delivery, ongoing efficiency initiatives across sourcing and manufacturing translated into gross margin expansion of 400 bps and operating profit growth of 53.3% versus the same period last year.
Sales Tax on UHT Milk
The packaged milk market continues to face an uneven playing field, driven by the 18% sales tax imposed on UHT milk in July 2024. Loose milk, which remains outside the tax net, continues to widen the price gap and suppress volumes in the formal dairy sector. The Company continued to actively engage with relevant government stakeholders to advocate for equitable taxation aligned with global benchmarks, underscoring the adverse impact of the current tax regime on farmer livelihoods and the documented dairy economy.
Operating Environment
Regional conflicts continued to create challenges for the operating environment during the 3rd quarter of 2026. Higher freight and energy prices weighed on the value chain and continued to put pressure on input costs during the third quarter.
On the domestic front, inflation and policy rates continued to weigh on household purchasing power. Collectively, these dynamics continue to have a bearing on category affordability and demand.
Leveraging its global expertise and 150 years of heritage, FCEPL remains committed to the highest standards of hygiene, food safety and sustainability and providing safe, affordable and nourishing dairy products to millions of Pakistanis, every day.
FrieslandCampina Engro Nine-Month Numbers at a Glance
- Revenue: PKR 88.4 billion, up 10.1% from PKR 80.2 billion
- Gross margin: up 400 basis points
- Operating profit: up 53.3%
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