NATF 1HFY26 profit skyrockets nearly 9x

February 25, 2026 (MLN):  National Foods Limited (PSX:NATF) reported a massive surge in net profit to Rs2.64bn for the half year ended December 31, 2025, a staggering 8.8 times increase from the Rs297.49m profit recorded in the same period last year.

The company's earnings per share skyrocketed to Rs97.27 from Rs4.67 in the corresponding period of the previous year.

Alongside the remarkable financial results, the company announced an interim cash dividend of Rs3.00 per share (60%) for the quarter. This is in addition to the interim dividend(s) already paid at Rs18.00 per share (360%), rewarding shareholders with a robust payout.

The company's net sales grew a solid 18% year-on-year to Rs22.59bn from Rs19.16bn.

Cost of sales increased by just 7% to Rs13.54bn from Rs12.70bn, resulting in a gross profit of Rs9.04bn, up a substantial 40% from Rs6.45bn in the prior period.

The gross profit margin improved significantly to 40.0% from 33.7% in H1 FY2025, indicating excellent pricing power, a favorable product mix, or effective cost-containment measures on the production side.

The net profit margin saw a massive expansion, standing at 11.7% compared to a mere 1.6% in the same period last year, reflecting the company's tremendously improved overall profitability.

Selling and distribution costs increased 13% to Rs4.09bn from Rs3.61bn, while administrative expenses rose 11% to Rs1.89bn from Rs1.70bn. Both line items grew at a slower pace than revenue, aiding margin expansion.

Other income more than doubled, to Rs474.35m from Rs231.64m. Meanwhile, other expenses saw a sharp increase to Rs262.09m from Rs43.07m.

Finance costs decreased significantly by 39% to Rs508.98m from Rs840.56m, further accelerating the bottom-line growth.

The company recorded an income tax expense of Rs65.27m, down 37% from Rs104.33m in the corresponding period last year.

The combination of strong double-digit top-line growth, vastly improved gross margins, and a sharp reduction in finance costs were the key drivers behind National Foods' exceptional profit growth.

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