Nestle Pakistan reports stellar performance in 6MCY23, pays Rs121 dps

July 31, 2023 (MLN): Nestle Pakistan Limited (PSX: NESTLE) experienced a significant rise of 42.77% YoY in its profitability, clocking in its profit after tax at Rs10.99 billion [EPS: Rs242.25] in the first half of 2023, compared to a profit of Rs7.7bn [EPS: Rs169.68] in the same period last year (SPLY).

Along with the results, the company also announced an interim cash dividend of Rs121 per share.

Going by the results, the company's top line marked an increase of 26.09% YoY to Rs101.43bn as compared to Rs80.44bn in SPLY.

The cost of sales rose by 23.49% YoY but was lesser than proportionate to sales decline, which improved the gross profit by 31.48% YoY to Rs34.4bn in 6MCY23.

During the period under review, other income marked a decline of 34.76% YoY to stand at Rs94.08m in 6MCY23 as compared to Rs144.2m in SPLY.

On the expense side, the company observed an increase in Selling and Distribution Expenses by 20.29% YoY and other expenses by 68.65% YoY to clock in at Rs3.12bn and Rs2.53bn respectively during the review period.

The company’s finance costs expanded by 10.27% YoY and stood at Rs1.37bn as compared to Rs1.24bn in 6MCY23, mainly due to higher interest rates.

On the tax front, the company paid a higher tax worth Rs6.6bn against the Rs5.31bn paid in the corresponding period of last year, depicting a rise of 24.38% YoY.

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