Barkat Frisian Agro Limited H1FY26 profit slips 10%

February 26, 2026 (MLN): Barkat Frisian Agro Limited (PSX:BFAGRO) reported a net profit of Rs300.06m for the half year ended December 31, 2025, a decline of 9.74% compared to the Rs332.45m profit recorded in the same period last year.

The company's earnings per share fell to Rs0.97 from Rs1.37 in the corresponding period of the previous year, showing a 29.20% contraction in per-share profitability.

The company's net sales grew a modest 5.17% year-on-year to Rs3.99bn from Rs3.79bn, showing steady top-line expansion.

Cost of sales increased by 5.56% to Rs3.54bn from Rs3.35bn, resulting in a gross profit of Rs448.55m, up a marginal 2.14% from Rs439.17m in the prior period.

The gross profit margin remained broadly stable at 11.25% compared to 11.59% in H1 FY2025.

The net profit margin stood at 7.53% compared to 8.77% in the same period last year.

Selling and distribution costs increased 10.94% to Rs95.21m from Rs85.83m, while administrative expenses surged sharply by 61.47% to Rs41.76m from Rs25.86m both line items growing at a faster pace than revenue, exerting pressure on operating margins.

Other income nearly doubled, rising 78.62% to Rs38.86m from Rs21.76m.

However, this was offset by a near-total collapse in exchange gain, which plunged 96.18% to just Rs2.87m from Rs75.17m in the prior period, significantly weighing on operating profit. Other expenses edged up marginally by 2.25% to Rs28.39m from Rs27.77m.

Finance costs decreased significantly by 61.78% to Rs24.26m from Rs63.49m, providing meaningful relief to the bottom line.

The company recorded an income tax expense of Rs0.60m, down 15.19% from Rs0.71m in the corresponding period last year.

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