Nestle registers 10% YoY profit growth in 2023

February 28, 2024 (MLN): Nestle Pakistan Limited (PSX: NESTLE) experienced a rise of 9.59% YoY in its profits in 2023, earning a profit after tax of Rs16.49 billion [EPS: Rs363.68], compared to a profit of Rs15.05bn [EPS: Rs331.86] in the same period last year (SPLY).

Along with the results, the company announced a final cash dividend of Rs19 per share, in addition to Rs174 interim cash dividend already paid during the year 2023

Going by the results, the company's top line rose 23.44% YoY to Rs200.61bn as compared to Rs162.52bn in SPLY.

The cost of sales rose by 15.02% YoY but was lesser than proportionate to sales increase, which improved the gross profit by 42.58% YoY to Rs70.76bn in 2023.

The gross margins improved to 35.27% as compared to 30.54% in SPLY.

During the period under review, other income decreased by 20.91% YoY to stand at Rs499.5m in 2023 as compared to Rs631.54m in SPLY.

On the expense side, the company observed a rise in administrative expenses by 15.51% YoY and other expenses by 48.26% YoY to clock in at Rs6.36bn and Rs3.38bn respectively during the review period.

The company’s finance cost increased by 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.

Amount in thousand except for EPS

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