Consumer purchasing power recovery boosts profits at food and beverage companies

Pakistan’s listed food and beverage companies began 2026 with a recovery that says as much about household wallets as it does about corporate discipline. The sector’s revenues rose 5% year-on-year to Rs196.2 billion in the first quarter of calendar year 2026, but profit after tax increased at three times that pace, rising 15% to Rs17 billion from Rs14.8 billion a year earlier. The difference between the two numbers is the story: the consumer is buying a little more, companies are giving away less margin, and the fall in finance costs has finally reached the income statement.

The recovery was not evenly spread across supermarket shelves. Beverages led sector revenue growth with a 17% year-on-year increase, followed by condiments and culinary products at 16%. AKD Securities attributed the beverage recovery to improved macroeconomic conditions and a rebound after the impact of GST implementation, while the growth in condiments and culinary products was supported by a better product mix and improving purchasing power as inflation eased.

The sector’s largest pool of sales remained dairy, where Nestlé Pakistan and FrieslandCampina Engro Pakistan anchor the listed universe. Nestlé alone reported Rs54 billion in quarterly sales, up 7%, while FrieslandCampina Engro Pakistan posted Rs28.7 billion, up 10%. Fauji Foods added another Rs8.5 billion in sales, up 8%, while smaller dairy players such as At-Tahur, Mitchell’s Fruit Farms and Ghani Dairies had more mixed outcomes.