The Company achieved revenue growth of 10.1% during the first nine months of 2026
over the same period last year. Revenue reached PKR 88.4 billion compared to PKR 80.2 billion
last year. This performance was driven by favorable portfolio mix, emphasis on in-market
execution, selective brand investment and route-to-market fundamentals. Alongside strong
delivery, ongoing efficiency initiatives across sourcing and manufacturing translated into gross
margin expansion of 400 bps and operating profit growth of 53.3% versus the same period last
year.
The packaged milk market continues to face an uneven playing field, driven by the 18% sales
tax imposed on UHT milk in July 2024. Loose milk, which remains outside the tax net, continues
to widen the price gap and suppress volumes in the formal dairy sector. The Company
continued to actively engage with relevant government stakeholders to advocate for equitable
taxation aligned with global benchmarks, underscoring the adverse impact of the current tax
regime on farmer livelihoods and the documented dairy economy.
Regional conflicts continued to create challenges for the operating environment during the 3 rd
quarter of 2026. Higher freight and energy prices weighed on the value chain and continued to
put pressure on input costs during the third quarter.
On the domestic front, inflation and policy rates continued to weigh on household purchasing
power. Collectively, these dynamics continue to have a bearing on category affordability and
demand.
Leveraging its global expertise and 150 years of heritage, FCEPL remains committed to the
highest standards of hygiene, food safety and sustainability and providing safe, affordable and
nourishing dairy products to millions of Pakistanis, every day.
