KARACHI: Fauji Foods Limited (FFL) reported its financial results for the half year ended June 30, 2026, posting its highest-ever first-half revenue while profitability declined due to increased marketing investments, inflationary pressures, and higher operating costs. The Board of Directors, in its meeting held on July 27, 2026, did not announce any cash dividend, bonus shares, or right shares.
According to the company’s financial statements, net revenue climbed to PKR 16.76 billion, reflecting a 12.6% year-on-year increase from PKR 14.88 billion in the corresponding period last year. Gross profit also improved to PKR 2.86 billion, supported by strong sales growth across the company’s product portfolio.
However, profit after tax declined to PKR 601.6 million, compared with PKR 776.6 million recorded in the same period of 2025. Earnings per share (EPS) also decreased to PKR 0.24 from PKR 0.31 a year earlier.
In its management commentary, Fauji Foods highlighted that the company achieved its highest-ever first-half revenue despite challenging macroeconomic conditions and weak consumer spending caused by inflation. The company stated that growth was recorded across its entire portfolio, validating its long-term strategy focused on sustainable and margin-accretive growth.
The company said its flagship dairy brand Nurpur continued to strengthen its market position, achieving its highest-ever market share during the first half of 2026 while recording revenue growth of 6%. Fauji Foods also credited its route-to-market strategy and expanded product portfolio for driving higher sales volumes in dairy and cereal products.
FFL noted that marketing expenditure increased by 9% year-on-year as the company continued investing in brand building and long-term growth initiatives. While these investments, along with inflation-driven cost increases, weighed on short-term profitability, management expects earnings to improve during the second half of the year through pricing measures, efficiency initiatives, and new business opportunities.
The company also emphasized its expanding export partnerships, particularly through value-added platforms with China, as part of its strategy to diversify revenue streams and strengthen future growth prospects.
Looking ahead, Fauji Foods expressed confidence that its diversified portfolio, including dairy, cereals, and pasta products, will continue supporting both revenue and profit growth. Management reiterated its commitment to investing in innovation, production capabilities, and market expansion to deliver sustainable long-term value for shareholders.
