National Foods posts Rs801m profit, declares Rs18 dividend

October 20, 2025 (MLN): National Foods Limited (PSX: NATF) has reported its financial results for the three months ended September 30, 2025, posting a profit after tax of Rs800.72m, marking a remarkable turnaround from a loss of Rs216.24m in the same period last year (SPLY).

The earnings per share (EPS) surged to Rs5.59, compared to Rs1.16 in SPLY, reflecting a 381.9% increase.

The company's net sales for the quarter rose 14.3% to Rs10.18bn, up from Rs8.91bn last year. Gross profit increased 45.1% to Rs3.98bn as the cost of sales remained relatively flat at Rs6.18bn, up just 0.25% year-on-year.

Operating expenses showed a measured increase, with selling and distribution costs rising 7.49% to Rs1.77bn and administrative expenses climbing 13.21% to Rs1.03bn. As a result, operating profit jumped significantly by 528.22% to Rs1.18bn, compared to Rs188.29m in SPLY.

Other expenses surged dramatically to Rs95.69m, up 2540.51% from Rs3.62m last year. However, other income also declined by 49.81% to Rs64.56m. Finance costs dropped substantially by 48.98% to Rs242.77m, reflecting improved financial management.

The company recorded a profit before final taxes, minimum tax differential and income tax of Rs908.97m, reversing from a loss of Rs162.49m in the corresponding quarter last year. After accounting for minimum tax differential of Rs40.94m and income tax of Rs67.30m, the net profit for the quarter stood at Rs800.72m.

Profit from discontinued operations, net of tax, contributed Rs832.67m, up 3.39% from Rs805.34m last year. Foreign exchange differences on translation of foreign operations showed a negative impact of Rs220.87m, compared to a gain of Rs152.50m in SPLY.

Total comprehensive income for the period reached Rs1.41bn, representing a 90.47% increase from Rs741.60m last year. Of this, Rs1.30bn was attributable to owners of the holding company, while Rs330.84m belonged to non-controlling interest.

The Board of Directors has  revealed an interim cash dividend of Rs18.00 per share (360%) for the quarter ended September 30, 2025.

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