KARACHI: FrieslandCampina Engro Pakistan Ltd reported a 10.4 per cent increase in net sales for the first quarter, supported by improved market execution and targeted brand investment, the company said.
Sales rose to Rs28.7 billion in the three months ended March 31, compared with the same period a year earlier. Growth came despite continued pressure on the packaged milk segment, which remains below pre-tax levels following the imposition of an 18% sales tax on UHT milk in July 2024.
The company said the tax disparity with untaxed loose milk continues to weigh on volumes in the formal dairy sector. It added that cost controls and operational efficiencies helped support margins during the quarter.
Revenue from the dairy-based products segment rose 8.2 per cent to Rs25.5 billion, while the frozen desserts business recorded stronger growth, with sales increasing 31 per cent to Rs3.2 billion.FrieslandCampina Engro also flagged emerging geopolitical tensions in the Middle East as a potential risk to consumer demand and affordability in the coming months.
