Fauji Foods 9MFY26 profit falls 30% to Rs666m

October 26, 2026 (MLN): Consolidated profit for the period of Fauji Foods Limited (PSX: FFL) fell 29.56% year-on-year to Rs665.77m for the nine months ended September 30, 2026, compared with Rs945.17m in the same period last year.

Basic and diluted earnings per share (EPS) declined 31.58% to Rs0.26 from Rs0.38 in the corresponding period last year.

Net revenue of Rs23.92bn was the company’s highest-ever nine-month figure, up 14.13% from Rs20.96bn. Growth was delivered across the entire portfolio despite the inflationary impact on consumption, with volume growth in dairy and cereals and strong export value-added platforms built with China.

The profit decline came from inflation-driven cost pressure, which pushed cost of revenue up faster than sales, along with higher operating expenses and a more than five-fold jump in levy.

Cost of revenue rose 16.97% to Rs20.12bn from Rs17.20bn, which limited gross profit growth to 1.15% at Rs3.80bn, compared with Rs3.76bn.

Marketing and distribution expenses increased 7.50% to Rs2.05bn from Rs1.91bn, while administrative expenses rose 14.03% to Rs776.89m from Rs681.32m. As a result, profit from operations fell 16.72% to Rs973.75m from Rs1.17bn.

Other income declined 21.55% to Rs326.45m from Rs416.10m, while other expenses fell 24.36% to Rs94.36m from Rs124.75m. Finance cost rose 20.55% to Rs73.55m from Rs61.01m.

Profit before levy and income tax fell 19.10% to Rs1.13bn from Rs1.40bn. Levy rose more than five-fold to Rs102.79m from Rs19.78m, taking profit before income tax down 25.39% to Rs1.03bn from Rs1.38bn.

Income tax declined 16.32% to Rs363.73m from Rs434.65m, which left profit for the period at Rs665.77m.

To offset inflation, the company plans a mix of pricing, efficiency projects and new business opportunities. The drop in profit is expected to recover as these interventions take effect over the rest of the year.

The company also expects its broader portfolio, including cereals and pasta, to support growth in both topline and bottom line.

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