Fauji Foods profit surges 76% to over Rs1bn

January 27, 2026 (MLN):  Fauji Foods Limited (PSX: FFL) reported a significant surge in profitability for the year ended December 31, 2025, with profit after taxation reaching Rs1.15bn, up 75.8% from Rs656.4m in the corresponding period last year.

Earnings per share (EPS) followed this upward trajectory, jumping to Rs0.46 compared to Rs0.26 in FY24.

This performance marks a strong year for the company, characterized by double-digit growth in its core operations.

Revenue from contracts with customers increased by 23.4% year-on-year to Rs28.89bn from Rs23.40bn in the previous year. Cost of revenue also rose by 23.8% to Rs23.91bn compared to Rs19.31bn in FY24.

Despite the rising costs of production, gross profit grew 21.6% to Rs4.98bn against Rs4.09bn last year, reflecting strong sales volume and pricing power across its product portfolio.

Profit from operations witnessed a substantial increase of 42.5%, standing at Rs1.45bn against Rs1.02bn in the prior year.

This was supported by a net impairment reversal on financial assets, which swung from a loss of Rs17.21m last year to a reversal of Rs6.94m this year.

However, the company invested more in its brand and infrastructure, as marketing and distribution expenses rose 17.4% to Rs2.63bn, while administrative expenses increased 10.5% to Rs906.94m.

Other income remained relatively stable with a slight dip of 0.7%, totaling Rs542.17m. Conversely, other expenses saw a massive decline of 53.9%, dropping to Rs155.46m from Rs336.88m.

Finance costs, however, surged 49.8% to Rs81.81m from Rs54.61m in FY24, likely due to the prevailing interest rate environment. Profit before taxation climbed 58.7% to Rs1.70bn compared to Rs1.07bn last year, even after accounting for a levy of Rs57.23m.

The company concluded the year with a net profit of Rs1.15bn after an income tax expense of Rs544.97m, which rose 31.6% from the prior period. This resulted in an improved net profit margin of 4.0% compared to the 2.8% margin recorded in FY24.

The overall profit growth was primarily driven by robust top-line expansion and a sharp reduction in other operating expenses, which comfortably offset higher finance costs and marketing spend.

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