Strong Q1CY26 performance lifts FCEPL profit by 71%

April 24, 2026 (MLN):  Frieslandcampina Engro Pakistan Limited (PSX: FCEPL) reported a stellar 71% surge in its net profit for the first quarter ended March 31, 2026, reaching Rs1.85bn compared to Rs1.08bn in the corresponding period last year.

Reflecting this robust bottom-line growth, the dairy and consumer goods company's earnings per share (EPS) expanded significantly to Rs2.41 from Rs1.42 in Q1 2025.

The profit expansion was anchored by steady top-line growth combined with favorable cost dynamics. FCEPL’s net revenue from contracts with customers posted a 10% year-on-year increase, rising to Rs28.72bn from Rs26.02bn.

Concurrently, the cost of sales grew at a slower pace of 7%, reaching Rs22.69bn. Because revenue growth comfortably outpaced the rise in direct production costs, the company’s gross profit secured a strong 27% expansion, settling at Rs6.03bn up from Rs4.75bn in the prior year.

On the operational front, the company navigated a mix of rising and falling overheads. Distribution and marketing expenses increased by 24% to Rs2.32bn, aligning with higher sales volumes.

However, FCEPL successfully slashed its administrative expenses by an impressive 32%, bringing them down to Rs359.29m. While other operating expenses rose 31% to Rs305.29m, a modest 18% bump in other income (Rs129.90m) provided a slight cushion.

Fueled by expanding gross margins and lower administrative costs, the operating profit grew by a solid 43% to Rs3.18bn.

The most significant catalyst for the bottom line occurred below the operating level. FCEPL managed to slash its finance costs by a massive 64%, plummeting to just Rs143.74m compared to a much heavier Rs404.94m burden recorded in the same period last year.

This drastic reduction in debt-servicing costs further propelled the profit before taxation, which jumped 67% to Rs3.03bn.

Even after absorbing a 61% higher taxation expense of Rs1.18bn, the company securely closed the quarter with its impressive 71% leap in final net profit.

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