Pakistan’s fast-moving consumer goods (FMCG) sector experienced a mixed performance in 2025, demonstrating resilience amid economic challenges including inflationary pressures and a large share of the population living below the national poverty line. Despite 44.7 percent of people falling under the World Bank poverty threshold, leading local and multinational manufacturers reported overall stable or improved sales, though companies remain cautiously optimistic about 2026.
Nestlé Pakistan posted modest revenue growth of 3 percent, rising to Rs199 billion from Rs193 billion in 2024, alongside an increase in profit after tax (PAT) to Rs17.2 billion from Rs15 billion. The company attributed the improvement to a strong second half of the year, a favorable product mix, tighter overhead controls, and value chain optimisation. Improved working capital management allowed Nestlé to reduce third-party debt and lower finance costs, strengthening net profit. The company also highlighted growth in female leadership, which rose to 32 percent from 27.5 percent, while projecting continued investment in core brands for 2026.
Unilever Pakistan Foods Limited experienced a substantial 20.4 percent increase in net sales to Rs40.5 billion from Rs34 billion in 2024, driven primarily by strong volume growth across all product segments, with Knorr Noodles leading the surge. However, the company’s PAT declined to Rs5.9 billion from Rs6.97 billion, reflecting rising costs. Unilever emphasized the delicate operating environment despite macroeconomic stabilization, citing inflationary pressures and currency risks, and committed to careful cost monitoring and pricing adjustments.
FrieslandCampina Engro Pakistan Limited reported marginally lower revenues of Rs104 billion compared to Rs107 billion in 2024, but PAT increased to Rs2.7 billion from Rs2.2 billion due to improved commercial execution and cost optimization, leading to a 70-basis-point expansion in gross margin. The company navigated challenges such as the 18 percent sales tax on packaged milk while reinforcing brand strength and consumer trust.
Colgate Palmolive Pakistan Limited achieved a 5.1 percent increase in turnover to Rs82 billion from Rs77.7 billion, although PAT fell by 10.2 percent to Rs8.7 billion due to increased trade investments and reduced interest income. The company noted early signs of economic improvement, though consumer spending remained subdued.
Fauji Foods Limited recorded its highest-ever sales revenue of Rs29 billion in 2025, a 23.4 percent growth over 2024, with PAT rising 76 percent to Rs1.15 billion, supported by cost optimization and a high-margin product portfolio. Ismail Industries Limited achieved gross sales of Rs61.5 billion, a 4.1 percent increase from the previous year, bolstered by stable domestic demand and expanded distribution.
Overall, the FMCG sector’s performance indicates cautious optimism, with companies prioritizing brand investment, operational efficiency, and cost control while navigating challenges in consumer purchasing power and inflation. Analysts suggest that continued macroeconomic stability and prudent policy measures will be key for sustaining growth in 2026.
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