FCEPL 1HCY26 profit surges to Rs4.4bn

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MG News | August 21, 2026 at 09:18 AM GMT+05:00

August 21, 2026 (MLN):  FrieslandCampina Engro Pakistan Limited (PSX: FCEPL) reported an extraordinary 3.34x (234%) surge in its net profit for the half-year ended June 30, 2026 (1HCY26), more than tripling its bottom line to Rs4.40bn compared to Rs1.32bn in the corresponding period last year.

Reflecting this explosive profitability, the company's basic and diluted earnings per share (EPS) jumped to Rs5.74 for the six-month period, up from Rs1.72 in 1HCY25.

The primary catalyst behind the financial expansion was a combination of robust top-line revenue growth, expanded gross margins, and a significant reduction in debt-servicing costs.

Net revenue from contracts with customers grew by 12% year-on-year to Rs58.86bn, up from Rs52.49bn in 1HCY25.

Cost of sales expanded at a slower pace of 7% (settling at Rs45.83bn), enabling gross profit to surge by 33% to Rs13.03bn compared to Rs9.78bn in the prior year.

On the operational front, overheads grew to support commercial outreach.

Distribution and marketing expenses rose 17% to Rs4.43bn, while administrative expenses were reduced by 15% to Rs877.96m.

Despite a 72% increase in "other operating expenses" (Rs645.60m), strong gross margin gains and a 29% boost in "other income" (Rs213.14m) propelled operating profit up by 54% to Rs7.29bn.

Below the operating line, FCEPL gained substantial relief from lower financing burdens.

Finance costs dropped by 56% to Rs349.73m (down from Rs801.49m in 1HCY25).

 Driven by core operating efficiency and interest cost relief, profit before income tax surged 76% to reach Rs6.94bn.

The company absorbed a 3% lighter corporate taxation charge of Rs2.54bn (down from Rs2.62bn in 1HCY25).

Supported by strong top-line momentum, margin expansion, and reduced debt costs, FrieslandCampina Engro Pakistan Limited securely closed the six-month period with its net profit reaching Rs4.40bn.

STATEMENT OF PROFIT OR LOSS FOR THE HALF YEAR ENDED JUNE 30, 2026 (Rs.000)

Description

2026

2025

change %

Revenue from contracts with customers - net

58,861,310

52,486,928

12.1%

Cost of sales

(45,833,775)

(42,704,677)

7.3%

Gross profit

13,027,535

9,782,251

33.2%

Distribution and marketing expenses

(4,431,294)

(3,801,533)

16.6%

Administrative expenses

(877,955)

(1,035,768)

-15.2%

Other operating expenses

(645,601)

(375,936)

71.7%

Other income

213,137

165,417

28.8%

Operating profit

7,285,822

4,734,431

53.9%

Finance costs

(349,727)

(801,493)

-56.4%

Profit before income tax

6,936,095

3,932,938

76.4%

Income tax

(2,538,440)

(2,616,086)

-3.0%

Profit for the period

4,397,655

1,316,852

234.0%

Earnings per share - basic and diluted (Rupees)

5.74

1.72

233.7%

 

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