Nestlé's net profits decline by 36.6%

MG News | October 29, 2019 at 04:36 PM GMT+05:00

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October 29, 2019: Nestlé Pakistan Limited recorded better sales – a 3.4% sales growth – in the third quarter of 2019 as compared to the same period last year despite the broader macro-economic challenges and high inflationary environment.

The growth in sales was a result of focused demand generation activities, the introduction of new products and continuous investment behind brands. The results were announced upon the conclusion of the meeting of the Board of Directors on Oct 29, 2019.

The revenue of the company was recorded at PKR 87 billion for the nine months ended Sept 30, 2019, a decrease of 4.2% as compared to the same period last year.

Net profit for the same period decreased by 36.7% to PKR 5.4 billion primarily due to higher input and energy costs and the imposition of sales tax and federal excise duty on milk powders and beverages.

Despite the tough economic environment, the management remains committed to meeting consumer expectations by offering quality and value-added products while remaining focused on optimization of the value chain.

Financial Result for the Nine months ended September 30th 2019 ('000 Rupees)
	Sep-19	Sep-18	% Change
Sales - net	87,053,262	90,892,495	-4.22%
Cost of goods sold	(63,114,454)	(62,178,300)	1.51%
Gross Profits	23,938,808	28,714,195	-16.63%
Distribution and selling expenses	(10,493,001)	(11,307,593)	-7.20%
Administration expenses	(2,506,569)	(2,359,403)	6.24%
Operating profits	10,939,238	15,047,199	-27.30%
Finance cost	(2,310,919)	(1,288,808)	79.31%
Other expenses	(1,122,500)	(1,218,676)	-7.89%
Other income	255,853	200,093	27.87%
Profit before taxation	7,761,672	12,739,808	-39.08%
Taxation	(2,297,349)	(4,110,996)	-44.12%
Profit after taxation	5,464,323	8,628,812	-36.67%
Earnings per share - Basic and Diluted (Rupees)	120.49	190.27	-36.67%

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