FrieslandCampina Engro Pakistan Limited has reported a significant improvement in its financial performance for the half year ended June 30, 2026, with profit after tax rising sharply compared with the same period last year.
According to the company’s unaudited financial results approved by its Board of Directors on August 20, 2026, FrieslandCampina Engro Pakistan recorded a profit for the period of Rs4.40 billion, compared with Rs1.32 billion in the first half of 2025. This represents an increase of nearly 234% year-on-year.
Revenue and Gross Profit Improve
The company’s revenue from contracts with customers increased to Rs58.86 billion during the first half of 2026, compared with Rs52.49 billion in the corresponding period of 2025. Revenue therefore grew by around 12.1% year-on-year.
At the same time, gross profit climbed to Rs13.03 billion, up from Rs9.78 billion a year earlier, representing growth of approximately 33.2%. The stronger increase in gross profit compared with revenue indicates a substantial improvement in the company’s gross profitability during the period.
Operating Profit Jumps 54%
FrieslandCampina Engro Pakistan also posted a strong improvement at the operating level. Operating profit reached Rs7.29 billion in the six months ended June 30, compared with Rs4.73 billion in the same period of 2025.
This translates into an increase of nearly 54%. Despite higher distribution and marketing expenses, the company was able to generate significantly higher operating earnings during the period.
Finance costs also declined substantially, falling to Rs349.7 million from Rs801.5 million in the first half of 2025. As a result, profit before tax increased to Rs6.94 billion, compared with Rs3.93 billion a year earlier, an increase of more than 76%.
Earnings Per Share Rise Sharply
The improvement in profitability was also reflected in earnings per share. Basic and diluted EPS increased to Rs5.74 for the first half of 2026 from Rs1.72 in the corresponding period last year.
For the quarter ended June 30, 2026, the company reported profit of Rs2.55 billion, compared with Rs232.1 million in the same quarter of 2025. This represents an increase of almost ten times year-on-year.
Balance Sheet Expands
The company’s total assets stood at Rs42.24 billion as of June 30, 2026, compared with Rs37.51 billion at the end of December 2025.
Current assets increased to Rs22.86 billion from Rs18.46 billion, with stock-in-trade rising to Rs14.96 billion from Rs9.89 billion. Meanwhile, shareholders’ equity increased to Rs18.68 billion, compared with Rs16.97 billion at the end of 2025.
Cash Flow Remains an Area to Watch
The company generated Rs1.09 billion in net cash from operating activities during the first half of 2026, compared with Rs459.2 million in the same period last year.
However, financing activities resulted in a net cash outflow of Rs1.55 billion, mainly reflecting dividend payments and other financing-related movements. The company ended the period with negative cash and cash equivalents of Rs501.3 million, compared with positive Rs331.3 million at the end of the corresponding period in 2025.
No Interim Dividend Announced
Despite the strong improvement in earnings, the company recommended no final cash dividend for the period and also announced no bonus or right shares. The financial statements show that the company paid a final dividend of Rs3.5 per share relating to the year ended December 31, 2025.
Overall, FrieslandCampina Engro Pakistan’s first-half results show a substantial strengthening in profitability, supported by higher revenue, improved gross profit, stronger operating earnings and lower finance costs. The sharp rise in EPS and profit after tax marks a significant improvement over the company’s performance in the first half of 2025, while cash flows and the increased level of inventories and financing remain important areas for investors to monitor.
