Frieslandcampina Engro Pakistan ltd (FCEPL) reported consolidated earnings per share of PKR 2.87 for CY24, compared to PKR 1.97 in CY23. Furthermore, in 2QCY25, the company reported EPS of PKR 0.30, compared to PKR 0.77 in the same period last year (SPLY).
Although milk prices have been stable for the last six months, they are expected to be impacted by recent floods. At the same time, the company maintained its position as the market leader in the UHT milk segment The company stated that their sourcing strategy gives them a significant advantage in terms of both availability and pricing. In the first half of fiscal year 2025 (1HCY25), the company recorded a high effective tax rate of 67%.
This was a one-time event resulting from a Supreme Court ruling in May 2025 regarding previous tax obligations. Management has confirmed that this will not affect future quarters. The company is navigating a complex landscape to secure a larger market share in the value-added segment. Management commented that they have achieved rapid growth and are enjoying higher profit margins in this segment. To capitalize on this success, they are also planning to launch several new products.
Important Disclosures
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