FCEPL profit jumps 22%, declares Rs3.5 dividend

February 17, 2026 (MLN): FrieslandCampina Engro Pakistan Limited (PSX:FCEPL) reported a net profit of Rs2.69bn for the year ended December 31, 2025, a 22% increase from the Rs2.2bn profit recorded in the previous year.

The company's earnings per share rose to Rs3.51 from Rs2.87 in the corresponding period while dividend came at Rs3.5 per share.

The dairy and nutrition company's revenue from contracts with customers declined marginally by 2% year-on-year to Rs104.45bn from Rs107.05bn, which reflected subdued consumer demand and a competitive market environment.

Cost of sales also declined 3% to Rs87.06bn from Rs90.02bn, resulting in a gross profit of Rs17.39bn, up 2% from Rs17.03bn in the prior year.

The gross profit margin improved slightly to 16.7% from 15.9% in FY2024, indicating better cost management and pricing discipline despite lower revenues.

The net profit margin stood at 2.6% compared to 2.1% in the same period last year, reflecting improved overall profitability.

Distribution and marketing expenses declined 10% to Rs7.43bn from Rs8.29bn, demonstrating effective cost rationalisation in sales and marketing activities.

Administrative expenses decreased 4% to Rs1.74bn from Rs1.82bn, while other operating expenses increased 20% to Rs675.4m from Rs564.4m.

Other income declined 20% to Rs387.7m from Rs482.5m.

Operating profit grew 16% to Rs7.94bn from Rs6.83bn in FY2024, reflecting the benefit of lower operating costs more than offsetting the modest decline in revenue.

Finance costs dropped sharply by 64% to Rs1.18bn from Rs3.26bn, providing significant relief to the bottom line.

This dramatic reduction in finance costs was a key driver of the strong improvement in pre-tax profitability.

Profit before taxation reached Rs6.75bn, up 89% from Rs3.58bn in the prior year, largely driven by the substantial reduction in finance costs.

The company recorded a taxation expense of Rs4.06bn, up 2.96 times from Rs1.37bn in the corresponding period last year.

Despite the significantly higher tax charge, the company achieved a 22% increase in net profit, underpinned by strong operational performance and lower borrowing costs.

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