Nestlé posts 12% profit growth in Q1CY26

April 23, 2026 (MLN): Nestlé Pakistan Limited (PSX: NESTLE) reported a solid 12% increase in its net profit for the first quarter ended March 31, 2026, reaching Rs5.61bn compared to Rs5bn in the corresponding period last year.

Reflecting this healthy bottom-line growth, the consumer goods giant's earnings per share (EPS) expanded to Rs123.74 from Rs110.23 in Q1 2025.

The growth was primarily driven by steady top-line expansion and tightly controlled direct costs.

Nestlé’s net revenue from contracts with customers posted a 7% year-on-year increase, rising to Rs54.02bn from Rs50.38bn.

The cost of goods sold grew at a slightly slower pace of 6%, reaching Rs33.14bn. Because top-line growth outpaced production costs, the company’s gross profit secured a 9% expansion, settling at Rs20.88bn up from Rs19.19bn in the prior year.

On the operational front, overheads escalated in line with inflation and business volume.

Distribution and selling expenses rose by 10% to Rs8.96bn, while administrative expenses also saw a 10% increase to Rs1.95bn.

Despite the higher operational expenditures, the strength of the gross margin pushed the operating profit up by 7% to Rs9.98bn.

Below the operating line, Nestlé benefited from several positive tailwinds. The company nearly halved its finance costs, which dropped 46% to Rs96.84m from Rs178.20m last year.

Additionally, other income surged, jumping to Rs484.43m compared to just Rs79.82m in Q1 2025. These gains easily absorbed a 20% rise in other expenses (Rs845.90m).

Bolstered by slashed debt-servicing costs and a massive influx of secondary income, profit before income tax jumped 12% to Rs9.52bn.

After accounting for a 13% higher taxation expense of Rs3.91bn, Nestlé successfully retained its growth trajectory, closing the first quarter with a final net profit of Rs5.61bn.

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