Arab Dairy Products Company reports net loss of US$2.735M in H1 2025

EGYPT – Arab Dairy Products Company (Panda) has reported net losses of US$2.73 million (EGP 132.891 million), a sharp reversal from the EGP 102.435 million profit recorded in H1 2024.

The reported losses were against net profits amounting to EGP 102.435 million in H1 2024. Revenues dropped to US$25.57 million (EGP 1.243 billion) in H1 2025 from US$29.63 million (EGP 1.441 billion) a year earlier.

Non-consolidated net losses reached US$2.85 million (EGP 138.508 million) during the first six months of 2025, versus profits of US$2.09 million (EGP 101.525 million) in the year-ago period.

Standalone loss per share hit EGP 0.28, compared with an earnings per share (EPS) of EGP 0.17 in H1 2024.

The company has encountered a significant setback due to rising competition and shifting consumer demands.

According to the company, known for its popular cheese and dairy offerings, this has weakened its market position, sparking concerns among experts about its future in Egypt’s competitive dairy sector.

In recent years, Arab Dairy Products, once a dominant player in the Egyptian market, has struggled to maintain its foothold. 

The company, which was acquired by FrieslandCampina, a Dutch dairy giant, in 2019, had ambitious plans to expand its operations and boost sales both locally and internationally. 

However, economic challenges in Egypt, including inflation and currency fluctuations, have impacted the firm’s profitability. 

A spokesperson from FrieslandCampina noted that while the acquisition initially showed promise, the company has faced “unexpected hurdles” in adapting to the local market dynamics.

The Egyptian dairy industry has witnessed rapid changes, with foreign and domestic players vying for dominance. 

According to industry analysts, five major companies, including Arab Dairy, have historically controlled much of the market. 

Yet, a report by Euromonitor International highlights that smaller, local producers are gaining traction by offering affordable alternatives, putting pressure on established brands. 

Arab Dairy’s export director, Wael Morsy, had previously outlined a goal in 2015 to grow sales by 30-35% annually over five years, a target that now seems out of reach given the current downturn.

Economic factors have played a significant role in the company’s struggles. Egypt’s rising production costs, coupled with a devalued currency, have squeezed margins for dairy firms reliant on imported ingredients.

 “The cost of raw materials has skyrocketed, and we’re finding it hard to pass that on to consumers,” said a senior manager at Arab Dairy, speaking on condition of anonymity. 

This sentiment reflects broader challenges in the sector, where balancing quality and affordability has become increasingly difficult.

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