October 17, 2025 (MLN): FriesLandCampina Engro Pakistan Limited (PSX: FCEPL) reported a profit after tax of Rs2.09bn for the nine months ended September 30, 2025, up 3.6% from Rs2.02bn in the corresponding period last year.

Earnings per share increased to Rs2.73 compared to Rs2.63 in 9MFY24.

Revenue from contracts with customers declined 2.8% YoY to Rs80.23bn from Rs82.51bn, cost of sales decreased 4.3% to Rs65.84bn from Rs68.81bn.

Gross profit increased 5% to Rs14.39bn against Rs13.70bn in 9MFY24, with the gross margin improving to 17.9% from 16.6% in the prior year period, indicating better cost management despite lower revenues.

Distribution and marketing expenses declined 8.9% to Rs5.74bn, while administrative expenses rose 7.5% to Rs1.48bn.

Other operating expenses increased 29.9% to Rs502.1 million. Other income decreased 6.6% to Rs286.3m from Rs306.6m last year.

The company recorded an operating profit of Rs6.96bn, up 17.1% from Rs5.94bn in 9MFY24.

Finance costs dropped significantly by 59.7% to Rs1.1bn from Rs2.72bn in the previous year, providing substantial relief to the bottom line.

Profit before taxation surged 81.8% to Rs5.86bn from Rs3.22bn in 9MFY24.

Taxation increased sharply to Rs3.77bn from Rs1.2bn in the prior period, significantly impacting net profitability.

The company concluded 9MFY25 with a net profit of Rs2.09bn, delivering a net profit margin of 2.6% compared to 2.4% in 9MFY24. The profit growth was driven by improved gross margins and substantially lower finance costs, though partially offset by a significantly higher tax burden.