Pakistan consumer goods sales rise despite inflation pressure
Local and multinational consumer goods companies in Pakistan reported improved sales in the first nine months of 2026 and in the first quarter of FY27, even as rising food inflation and weakening purchasing power weighed on households. Higher fuel costs, driven by Middle East tensions since the start of the US-Israel war on Iran on February 28, added to the pressure on family budgets. Dawn reported the results.
Some firms remain cautious about the full year 2026, citing persistent inflation, but shoppers still bought branded food, dairy and home care products, even if more carefully than before.
The squeeze is visible in fuel costs: Feature Pakistan reported on November 1 that LPG was selling at up to Rs630 per kg in the open market, against an official price of Rs294 per kg.
Company results at a glance
| Company | Period | Sales | Profit after tax |
|---|---|---|---|
| Nestle Pakistan | Nine months to September 30 | Rs160bn, up 6.3% | Rs14.526bn, up 3.1% |
| FrieslandCampina Engro Pakistan | Nine months of 2026 | Rs88.4bn, up 10.1% | Rs6.5bn, up from Rs2bn |
| Unilever Pakistan Foods | Nine months of 2026 | Rs37.6bn, up from Rs30bn | Rs6.326bn, up from Rs4.6bn |
| Colgate-Palmolive Pakistan | July-September 2026 | Rs52.7bn, up 25.53% | Rs4.9bn, up 8% |
| Fauji Foods | Nine months of 2026 | Rs23.9bn, up 14.1% | Rs666m, down from Rs945m |
| National Foods | July-September 2026 | Rs11.1bn, up from Rs10bn | Rs888m, up from Rs801m |
Nestle, Engro and Unilever
Nestle Pakistan posted net sales of Rs160bn for the nine months ended September 30, up 6.3% year on year, while net profit after tax rose 3.1% to Rs14.526bn from Rs14.1bn, despite higher tax expenses. The company attributed its performance to increased investment in brands, product innovation and renovation, stronger execution in the market, improved export channels and disciplined pricing where necessary. It also accelerated localisation and secured essential inventories to cut foreign exchange exposure. Its outlook remains cautious, citing geopolitical instability, volatile energy and input costs and persistent inflation.
FrieslandCampina Engro Pakistan raised revenue by 10.1% to Rs88.4bn in the first nine months of 2026, from Rs80.2bn, while profit rose to Rs6.5bn from Rs2bn. Growth was attributed to a favourable product mix, stronger market execution and selective brand investment. Regional conflicts and higher freight and energy prices pressured costs in the third quarter, while inflation and interest rates constrained household purchasing power in Pakistan.
Unilever Pakistan Foods lifted sales to Rs37.6bn in the first nine months of 2026, from Rs30bn, while profit after tax rose to Rs6.326bn from Rs4.6bn. The company said Pakistan’s economy remained resilient on higher foreign exchange reserves, fiscal consolidation and gradual recovery, but renewed inflation, higher commodity and energy prices and Middle East tensions constrained spending.
Colgate, Fauji Foods and National Foods
Colgate-Palmolive Pakistan recorded sales up 25.53% to Rs52.7bn in July-September 2026, driven by higher prices and higher sales volumes, while profit after tax rose 8% to Rs4.9bn year on year. The company cited persistent inflation, tax collection constraints and high energy tariffs, plus supply chain risks from reliance on Gulf Cooperation Council countries for raw materials.
Fauji Foods reported its highest-ever nine-month revenue of Rs23.9bn in 2026, up 14.1% year on year, but profit after tax fell to Rs666m from Rs945m as costs rose faster than prices.
National Foods raised sales to Rs11.1bn in July-September 2026, from Rs10bn, while profit rose to Rs888m from Rs801m. According to Rabia Yousuf of Topline Securities, National Foods told shareholders at its 55th annual general meeting that it expected revenue growth of 15% in FY27, with scope for more if conditions improved. Management highlighted freight rates rising from $500-$600 to $5,000 per container, warned that continuing Middle East tensions may constrain export growth, and plans to launch more than 25 products.
Why sales rose while shoppers felt squeezed
The pattern points to higher prices, better product mix and stronger execution, rather than a broad rise in household incomes. Companies raised prices in several cases to cover higher input, freight and energy costs, while shoppers kept buying staples and everyday brands within tighter budgets.
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Frequently asked questions
Which consumer firms reported higher sales in Pakistan?
Nestle Pakistan, FrieslandCampina Engro Pakistan, Unilever Pakistan Foods, Colgate-Palmolive Pakistan, Fauji Foods and National Foods all reported higher sales in the periods covered.
Why are companies cautious about the full year?
Companies cite persistent inflation, volatile energy and input costs, higher freight rates and geopolitical instability linked to Middle East tensions.
How did Fauji Foods grow sales but earn less profit?
Fauji Foods posted record nine-month revenue of Rs23.9bn, up 14.1%, but profit after tax fell to Rs666m from Rs945m as costs weighed on earnings.
What did National Foods say about FY27?
National Foods told shareholders at its 55th annual general meeting that it expected revenue growth of 15% in FY27, with plans to launch more than 25 products.
