FCEPL 1HCY26 profit surges to Rs4.4bn
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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