Foreign food giants post strong sales despite war

Dawn reported that multinational food firms in Pakistan expect a cautious year ahead because of the US-Iran conflict, yet their sales held up well in the first half of 2026. Shipment delays and fuel costs were flagged in financial statements as pressures that could keep input costs high. Profit after tax declined at several of them, even where revenue climbed.

Nestle Pakistan reported net sales of Rs107 billion for the six months to June 30, a 5.7 per cent rise from a year earlier. Profit after tax, however, fell 4.3pc to Rs9.9bn from Rs10.4bn, with higher brand spending, fuel-linked distribution costs and a larger tax charge weighing on the result. The company said green energy investments in solar and biomass partly offset energy cost pressures, and it continued localising its supply chain while securing critical inventories.

FrieslandCampina Engro Pakistan (FCEPL) lifted revenue 12.1pc to Rs60bn in the first half from Rs52.5bn a year earlier, and operating profit rose 54pc. Efficiency work across sourcing, manufacturing and distribution helped widen its gross margin by 350 basis points. Fauji Foods (FFL) reported a record half-year revenue of Rs12.77bn, up 12.6pc, yet profit after tax fell to Rs560m from Rs734m. The company said the profit decline is expected to ease as planned measures take effect later in the year.