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.
| Unconsolidated (un-audited) Financial Results for year ended December 31, 2023 (Rupees in '000) | |||
|---|---|---|---|
| Dec 23 | Dec 22 | % Change | |
| Sales | 200,605,005 | 162,516,255 | 23.44% |
| Cost of sales | (129,845,135) | (112,886,474) | 15.02% |
| Gross Profit | 70,759,870 | 49,629,781 | 42.58% |
| Administrative Expenses | (6,356,994) | (5,503,574) | 15.51% |
| Selling And Distribution Expenses | (29,849,578) | (17,347,229) | 72.07% |
| Other Income | 499,497 | 631,543 | -20.91% |
| Other Operating 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: 2024-02-28T13:20:57+05:00
