National Foods profit surges over sixfold to Rs26bn

September 18, 2026 (MLN): National Foods Limited (PSX: NATF) posted a stellar performance for the year ended June 30, 2026, with its consolidated profit for the year surging to Rs26.39bn from Rs4.42bn in the corresponding period last year a more than sixfold increase.

Showing this exceptional bottom-line growth, the company's basic and diluted earnings per share (EPS) expanded to Rs111.42 from Rs14.85 in FY25.

The Board of Directors has declared a final cash dividend of Rs5.00 per share (100%) for the year ended June 30, 2026. This is in addition to interim dividend(s) already paid at Rs25.00 per share (500%).

The top-line showed healthy growth, with net sales rising 14% year-on-year to Rs50.65bn from Rs44.37bn in the prior year.

Cost of sales rose at a slower pace of 11% to Rs31.20bn, allowing gross profit to expand by 20% to Rs19.45bn from Rs16.18bn showing meaningful margin improvement driven by better pricing and cost efficiencies.

On the expenditure side, selling and distribution expenses rose 6% to Rs9.34bn. Impairment loss on financial assets swung to a charge of Rs74.76m from a reversal of Rs29.46m last year.

Administrative expenses rose 9% to Rs3.92bn. These combined movements still drove operating profit up 62% to Rs6.11bn from Rs3.77bn.

Below the operating line, other expenses rose 32% to Rs575.93m. Other income nearly quadrupled to Rs1.85bn from Rs505.11m a standout positive contribution.

Finance costs declined 22% to Rs1.06bn from Rs1.36bn, providing a meaningful tailwind. These factors pushed profit before final tax, minimum tax and income tax to more than double at Rs6.32bn from Rs2.48bn.

No final tax was recorded in the current year against Rs4.18m in FY25. Minimum tax rose 33% to Rs265.22m, bringing profit before income tax to more than double at Rs6.06bn from Rs2.27bn.

Income tax expense declined 48% to Rs138.87m from Rs267.52m, amplifying the result further. Profit from continuing operations nearly tripled to Rs5.92bn from Rs2.00bn.

The transformative development of the year was an exceptional gain from discontinued operations net of tax which surged to Rs20.47bn from Rs2.41bn, a more than eightfold increase, that propelled the total profit for the year to more than sixfold at Rs26.39bn from Rs4.42bn.

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