Karachi: The Directors of Quice Food Industries Ltd have disclosed the company's financial performance for the first quarter ending September 30, 2026, highlighting significant challenges in the operating environment. The report, dated November 3, 2026, indicates a notable decline in sales and profitability, affected by local and global economic pressures.
The persistent conflict in the Middle East has continued to disrupt global energy prices and supply chains, impacting the company's operational costs. Domestically, fuel prices exhibited volatility, with petrol prices climbing from Rs 342.79 per litre on September 1 to Rs 387.54 by the month's end. High-speed diesel prices hovered near Rs 400 per litre at the beginning of October, escalating distribution and logistics expenses.
Headline inflation averaged 10.2% from July to September 2026, compared to 4.3% in the same period last year, with September witnessing a slight rise to 10.3%. The State Bank of Pakistan maintained its policy rate at 11.5% during its July review, sustaining high borrowing costs. These financial pressures have adversely affected consumer purchasing power and domestic demand.
Quice Food Industries reported net sales of PKR 352.27 million for the quarter, down 17% from PKR 425.74 million in the previous year. The decline is attributed to a high base effect, as last year's sales had surged by 52.67%, and the current economic constraints, including inflation and elevated policy rates, have reduced consumer demand. Export sales constituted 47.26% of total sales, a decrease from 62.71% in September 2025.
Gross profit for the quarter stood at PKR 63.52 million, a 23% decrease from PKR 82.73 million last year, with the gross margin narrowing to 18.03%. The increased costs of fuel, freight, and inputs, coupled with lower sales volumes, outweighed the company's efficiency measures. Distribution and administrative expenses amounted to PKR 60.549 million, resulting in an operating profit of PKR 2.970 million, representing 0.84% of sales.
After accounting for levies of PKR 4.267 million, the company reported a loss after taxation of PKR 1 million, contrasting with a profit of PKR 3.539 million in the previous year. The loss per share was Rs. 0.01, as opposed to earnings per share of Rs. 0.036 last year. Management is working to restore profitability through cost control and enhanced distribution efficiency.
According to information available from the Pakistan Stock Exchange (PSX), Quice Food Industries is categorized under the food and beverage sector. The company continues to invest in brand development, expand its distribution network, and enhance market penetration both domestically and in export markets, focusing on high-margin and value-added products.