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Nestlé’s half year profits drop by 21%

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Nestle Pakistan Reported a drop of 21% in half yearly profits, owing to a significant increase of 66% in Finance cost.

Cost of goods sold also increased by a greater margin of around 6% as compared to the net sales, which only increased by 4%

Furthermore, the company also recorded lower Other income.

Although the provision for taxation reduced by 14.8%, Nestlé’s profits for the period dropped to Rs.6.3 billion from Rs.7.9 billion during the previous year.

Earnings per share dropped to Rs.138.03 per share as compared to Rs.174.95 per share in the previous year.

Financial Result for the period ended June 30th 2018 ('000 Rupees)

 

Jun-18

Jun-17

% Change

Sales – net

                     64,567,801

                     61,941,060

4.24%

Cost of goods sold

                  (42,175,969)

                  (38,223,982)

10.34%

Gross Profits

                     22,391,832

                     23,717,078

-5.59%

Distribution and selling expenses

                     (9,843,421)

                     (9,419,774)

4.50%

Administration expenses

                     (1,662,179)

                     (1,415,814)

17.40%

Operating profits

                     10,886,232

                     12,881,490

-15.49%

Finance cost

                        (795,416)

                        (477,229)

66.67%

Other operating expenses

                        (848,843)

                        (976,567)

-13.08%

Other income

                           120,562

                           148,934

-19.05%

Profit before taxation

                       9,362,535

                     11,576,628

-19.13%

Taxation

                     (3,102,789)

                     (3,642,931)

-14.83%

Profit after taxation

                       6,259,746

                       7,933,697

-21.10%

Earnings per share – Basic and Diluted (Rupees)

                             138.03

                             174.95

-21.10%

 

Posted on: 2018-08-16T14:13:00+05:00

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