FrieslandCampina Engro Pakistan Limited records strong financial results in H1, 2023

FrieslandCampina Engro Pakistan Limited (FCEPL) announced its financial results for the first half of the year, concluding on June 30th, 2023. Despite a challenging operating environment and economic slowdown, the Company delivered strong double-digit growth of 53% (revenue of PKR 47.0 billion against PKR 30.8 billion in the same period last year) fueled by volume growth, favorable portfolio mix, pricing management initiatives and distribution expansion.

The Company witnessed gross profit growth of 48% while gross margin declined by 49 bps due to high inflation, increase in energy prices, global geo-political environment, foreign exchange constraints and significant currency devaluation. However, while the gross margin declined, the operating margin improved by 80bps over last year due to initiatives such as cost rationalization and driving efficiencies across the value chain.

Profit after tax (Rs 1.3 billion vs Rs 0.9 billion same period last year) as a percentage of sales declined by 23 bps due to significant increase in finance cost and taxation.


The segment reported a revenue of Rs. 41.6 billion, reflecting a growth of 57% versus the same period last year. Olper’s, the flagship brand, led the growth in the segment by strengthening its market leadership position through consistent brand and trade investments.

Other brands, including Olper’s Cheese, Olper’s Flavored Milk, Olper’s Full Cream Milk Powder (FCMP), Olper’s Cream, and Tarang continued to grow in volume, distribution market share.


The segment reported a revenue of Rs. 5.4 billion, reflecting a growth of 25% versus the same period last year. This growth has been enabled by timely planning and investment as well as the launch of innovative new products like Shahi Mango Stick, Mango Crush and Candy Pop stick.


The financial performance of the company for the half year ended June 30, 2023, is summarized below:

Half Year ended
June 30, 2023
(Rs. in million) 2023 2022
Net Sales 47,015 30,771 53%
Operating Profit 3,873 2,289 69%
% of sales 8.2% 7.4% +80 bps
Profit / (Loss) after tax 1,326 938
% of sales 2.82% 3.05% -23 bps
Earnings / (Loss) per share (Rs.) 1.73 1.22


As part of its purpose to enhance the livelihoods of farmers, the Company partnered with NEDAP, a Netherlands-based technology company. This collaboration will enhance farm efficiency, increase farmers’ income, and improve access to quality dairy products for consumers in Pakistan.


The country’s economic and operating environment is expected to remain challenging, and the Company expects to face headwinds on both demand and supply side due to shortage of forex, sustained high levels of inflation, high interest rates, economic slowdown, and reduced purchasing power of consumers.

Equipped with an agile business model, the management is confident in its ability to drive efficiencies across the value chain, build resilience and sustain growth by staying relevant to the consumer and offering a value for money proposition while managing profitability through optimum pricing and cost transformation.

FCEPL’s purpose is to transform the health and well-being of Pakistanis, now and for generations to come. Leveraging the global expertise and heritage which spans 150 years, FCEPL remains committed to the highest standards of hygiene, food safety and sustainability to provide safe, affordable, and nourishing dairy products to millions of Pakistanis, every day.