Karachi: FrieslandCampina Engro Pakistan Limited (FCEPL) disclosed its financial outcomes for the first half of 2024, ending June 30, with notable revenue growth despite economic adversities. The company announced a 17% increase in revenue, reaching PKR 55.0 billion, up from PKR 47.0 billion during the same period last year, attributed to strategic portfolio adjustments, market investments, and distribution enhancements.

According to FrieslandCampina Engro Pakistan Limited, despite the growth in revenue and gross profit—which also saw a 16% increase—the company’s profit after tax experienced a 6% decline, totaling PKR 1.26 billion compared to PKR 1.33 billion in the previous year, primarily due to rising interest rates. The dairy-based products segment, which includes popular brands like Olper’s UHT and Olper’s Cream, reported an 18% growth in revenue, amounting to Rs. 48.87 billion.

The frozen desserts segment, under the campaign “Wow Bharay Deserts,” also showed resilience with a 13% revenue increase, reaching 6.16 billion despite initial challenges at the start of the year. This segment’s success was driven by continuous brand investment and innovative in-store executions.

The financial landscape for FCEPL was further complicated by the Finance Act, 2024, which introduced an 18% sales tax on packaged milk, leading to a significant price increase. This change is expected to strain consumers further and may shift preference towards untaxed and unregulated loose milk, posing potential public health risks.

FCEPL is actively working with the Pakistan Dairy Association to address these challenges, advocating for considerations that align with government priorities such as nutrition and economic documentation. The company remains committed to maintaining its market leadership by adapting to consumer demands, optimizing investments, and leveraging its global expertise to ensure the delivery of high-quality, safe, and sustainable dairy products to the Pakistani market.