FCEPL’s Diary Products Revenue Declined 9.1%
Staff Report
Islamabad: FrieslandCampina Engro Pakistan Limited (FCEPL)’s revenue from the Dairy-Based Products segment has declined by 9.1 percent, which stood at Rs 23.7 billion against the same period last year.
FrieslandCampina Engro Pakistan Limited (FCEPL) on Wednesday announced its financial results for the first quarter ended 31st March 2025.
The Company continued to face a tough operating environment after the imposition of sales tax on UHT milk, from July 1, 2024.Pakistan Fertilizer Sector: Sales Down, Profits Steady
Financial Performance
The financial performance of the company is for the three months ended March 31, 2025.
| Metric | Three Months Ended | Variation |
|---|---|---|
| Net Sales | 26,016 (2025) | 27,464 (2024) |
| -5.3% | ||
| Operating Profit | 2,222 (2025) | 1,971 (2024) |
| +12.8% | ||
| Operating Profit as % of Sales | 8.54% (2025) | 7.18% (2024) |
| +137 bps | ||
| Profit / (Loss) After Tax | 1,085 (2025) | 665 (2024) |
| Profit / (Loss) After Tax as % of Sales | 4.17% (2025) | 2.42% (2024) |
| +175 bps | ||
| Earnings / (Loss) per Share (Rs.) | 1.42 (2025) | 0.87 (2024) |
The lack of a level playing field versus loose milk is another factor that continued to drive the safe packaged milk volumes downward by shifting consumption towards unsafe loose milk.
Consequently, net sales have dropped by 5.3% to Rs 26.0 billion (Q1 2024: PKR 27.5 billion).
The improvement in profit after tax of Rs 420 million was mostly due to a reduction in finance costs. It was optimized for working capital and lower interest rates.
Despite lower volumes, the company has maintained its focus on cost optimization. It also focused on operational efficiencies and disciplined management of discretionary expenditures.
FROZEN DESSERTS SEGMENT
The Frozen Desserts segment recorded revenue of Rs 2.28 billion, registering a significant growth of 67.7% compared to the same period last year (PKR 1.36 billion).
