Fauji Foods Posts Rs786M Loss in H1 FY25

Lahore, July 25, 2025, 06:47 PM PKT — Fauji Foods Limited has suffered a steep loss after tax of Rs786.2 million for the six-month period ended June 30, 2025, a sharp rise from Rs514.9 million last year, per financial results filed with the Pakistan Stock Exchange. Net revenues plummeted 26% to Rs3.91 billion from Rs5.3 billion in 2024, with gross profit dropping to Rs179 million amid soaring input costs and lower sales volume. Operating expenses saw only modest cuts, while finance costs surged to Rs355.6 million from Rs332 million, deepening the financial strain, yet the stock price climbed over 4% post-announcement, reflecting bullish market sentiment and investor confidence.

No interim dividend was declared, with the board citing challenging macroeconomic conditions and persistent inflation as drags on consumer demand and operating margins. Management vows cost streamlining and efficiency boosts for the second half. Web context shows industry cost pressures, while posts found on X reflect optimism and concern—some hail stock gains, others question viability. Critically, the narrative of “market optimism” may mask underlying fragility—web data hints at sector-wide struggles, and X sentiment suggests distrust in sustained recovery, pointing to potential risks.