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NESTLE earns Rs16.49bn in 2023, announces Rs19 additional dividend

Nestle registers 10% YoY profit growth in 2023
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February 26, 2024 (MLN): Nestle Pakistan Limited (PSX: NESTLE) has recorded a profit of Rs16.49 billion [EPS: Rs363.68] in 2023, which is 9.59% YoY higher than the recorded earnings of Rs15.05bn [EPS: Rs331.86] in the same period last year (SPLY).

The Board of Directors (BoD) of NESTLE has declared a final cash dividend of Rs19 per share i.e. 190% owing to improved financial performance in 2023.

This is in addition to Rs174 per share interim cash dividend already paid during the year 2023.

The financial statement reveals that the company's top line grew by 23.44% YoY to Rs200.61bn as compared to Rs162.52bn in SPLY.

The cost of sales also rose 21.28% YoY and stood at Rs129.85bn in 2023. However, the growth in NESTLE's cost to sell was lower than proportionate to the rise in revenue, resulting in a 27.61% YoY improvement in gross earnings to Rs70.76bn in 2023.

The expense section shows that the company observed a rise in Distribution and selling expenses by 28.83% YoY and other expenses by 48.26% YoY to clock in at Rs29.85bn and Rs3.38bn respectively during the review period.

Similarly, NESTLE's administrative costs also grew 15.51% YoY to Rs6.36bn in 2023.

On a negative note, other income dropped 20.91% YoY to stand at Rs499.5m in 2023 as compared to Rs631.54m in SPLY.

Despite rising burden of expenses and drop in other income, the growth in company's revenue was significant enough for NESTLE to record a rise in its profit.

The company’s finance cost inflated 12.32% YoY and stood at Rs2.62bn as compared to Rs2.34bn in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a higher tax worth Rs12.55bn against the Rs7.74bn paid in the corresponding period of last year, depicting a rise of 62.12% YoY.

Unconsolidated (un-audited) Financial Results for year ended 31 December, 2023 (Rupees in '000)
  Dec 23 Dec 22 % Change
Sales 200,605,005 162,516,255 23.44%
Cost of sales (129,845,135) (107,064,800) 21.28%
Gross Profit 70,759,870 55,451,455 27.61%
Distribution and selling expenses (29,849,578) (23,168,903) 28.83%
Administrative expenses (6,356,994) (5,503,574) 15.51%
Other Income 499,497 631,543 -20.91%
Other expenses (3,384,073) (2,282,490) 48.26%
Finance cost (2,623,853) (2,335,994) 12.32%
Profit before taxation 29,044,869 22,792,037 27.43%
Taxation (12,552,070) (7,742,321) 62.12%
Net profit for the period 16,492,799 15,049,716 9.59%
Basic earnings/ (loss) per share 363.68 331.86

Amount in thousand except for EPS

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Posted on: 2024-02-26T13:47:14+05:00