Karachi: FrieslandCampina Engro Pakistan Limited (FCEPL) has announced its financial results for the fiscal year ending December 31, 2025, reporting a 16% increase in operating profit compared to the previous year. The company attributed this growth to disciplined cost management and various efficiency initiatives across its operations, including procurement, manufacturing, logistics, and overhead optimization.
According to FrieslandCampina Engro Pakistan Limited, the company faced challenges due to the uneven playing field created by the sales tax implementation on packaged UHT milk in 2024. Despite these obstacles, FCEPL focused on its commercial agenda, investing in its brands and offering customer-centric products. This strategy led to an increase in market share and an improved volume mix.
Moreover, FCEPL highlighted concerns about the consumption of loose milk, which remains untaxed and outside the documented economy and food safety frameworks. The company argued that the current tax regime conflicts with government objectives of providing access to safe and nutritious food, strengthening supply chains, and supporting dairy farmers' livelihoods. The prevailing tax structure, it claims, limits organized dairy companies' ability to invest in category development and long-term dairy programs.
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