Fauji Foods reports Rs786m half-year loss

Revenues decline 26% year-on-year amid rising costs and weak demand

LAHORE — Fauji Foods Limited has posted a loss after tax of Rs786.2 million for the six-month period ended June 30, 2025, compared to a loss of Rs514.9 million in the same period last year, according to financial results shared with the Pakistan Stock Exchange.

The company’s net revenues fell sharply by 26% to Rs3.91 billion, down from Rs5.3 billion in the corresponding period of 2024. Gross profit declined to Rs179 million, reflecting pressure from elevated input costs and lower sales volume.

Operating expenses were only modestly reduced, and the company incurred a finance cost of Rs355.6 million, up from Rs332 million last year, pushing the bottom line further into negative territory. Despite its performance, the company stock price has gone up by over 4% since the financials were announced, emulating a bullish sentiment in the market and some belief in the company by the investors.

No interim dividend was declared. The board stated that challenging macroeconomic conditions and persistent inflation continue to weigh on consumer demand and operating margins. The management emphasized ongoing efforts to streamline costs and improve operational efficiency in the second half of the year.

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