Karachi: Fauji Foods Limited announced its financial results for the half-year ending June 30, 2026, revealing a decline in profit figures as the company grapples with increasing costs. The board of directors, in a meeting held on July 27, 2026, decided against declaring any cash dividend, bonus shares, right shares, or other entitlements and corporate actions.

The company's revenue from contracts with customers reached 16.76 billion rupees, marking a very large or significant move of 12.64% increase compared to 14.88 billion rupees in the corresponding period last year. However, the cost of revenue surged to 13.91 billion rupees from the previous year’s 12.13 billion rupees, exerting pressure on the overall profitability.

Fauji Foods reported a gross profit of 2.86 billion rupees for the half-year, slightly up from 2.76 billion rupees in the same period last year. Despite the increase in revenue, the company's profit for the period fell to 601.59 million rupees, down from 776.57 million rupees reported last year, indicating a big move of 22.53% decrease.

The company faced higher marketing and distribution expenses amounting to 1.49 billion rupees, compared to 1.36 billion rupees last year. Administrative expenses also rose to 510.41 million rupees from 427.64 million rupees. This increase in expenses contributed to a reduced profit from operations, which stood at 856.78 million rupees, down from 970.01 million rupees.

According to information available from the Pakistan Stock Exchange (PSX), the earnings per share for the half-year were reported at 0.24 rupees, a decrease from the previous year's 0.31 rupees.

The company also reported a decline in profit before levy and income tax, reaching 894.48 million rupees, compared to 1.12 billion rupees in the prior year. Additionally, the income tax expense was reduced to 292.88 million rupees from 339.46 million rupees.

On the balance sheet, Fauji Foods disclosed an accumulated loss of 14.76 billion rupees, showing an improvement from the 15.48 billion rupees reported at the end of December 2025. The total equity and liabilities of the company amounted to 21.56 billion rupees as of June 30, 2026, reflecting a moderate increase from 20.90 billion rupees at the end of last year.