Nestlé Pakistan sees 10% decline in profit after tax

February 13, 2025 (MLN):  Nestlé Pakistan Limited (PSX: NESTLE) reported a 10.22% decline in profit after tax, amounting to Rs14.81 billion (EPS: Rs326.53) for the year ended December 31, 2024, compared to Rs16.49bn (EPS: Rs363.68) in the previous year.

The company’s Board of Directors has authorized a final cash dividend of Rs30 per share (300%), in addition to the Rs136 per share interim cash dividend already paid during 2024.

The company’s top line fell by 3.69% to Rs193.21bn from Rs200.61bn in 2023, while the cost of goods sold declined by 4.75%.

However, the gross profit saw a slight dip of 1.75% to Rs69.52bn.

Distribution and selling expenses surged 10.47% to Rs32.97bn, and administrative expenses also rose by 10.13% to Rs7.00bn, putting further pressure on profitability.

Consequently, the operating profit declined by 14.48% to Rs29.55bn.

 Other income increased by 23.25% to Rs615.61 million, but finance costs eased by 1.13% to Rs2.59bn.

Other expenses also dropped significantly by 38.80% to Rs2.07bn, providing some relief.

 The company’s profit before taxation stood at Rs25.28bn, marking a 12.78% decline, while income tax expenses were reduced by 16.17% to Rs10.47bn.

This resulted in an overall profit drop of 10.22% compared to the previous year.

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