Nestlé Pakistan announced its financial results for the calendar year 2019. The company made a profit of Rs. 7.35 billion, showing a decline of 36.70% compared to Rs. 11.61 billion in 2018.
Nestlé Pakistan posted a revenue of Rs. 116 billion for 2019, a 3.9% reduction from 2018. The continuously evolving challenges in the economic and business environment impacted the purchasing power of people, causing this reduction, said the company in a statement.
The cost of the goods sold remained almost unchanged at Rs. 82.61 billion, which brought the gross profit to Rs. 33.34 billion, a decrease of 14.10% compared to Rs. 38.81 billion posted in 2018. ( Nestle Pakistan )
In the course of the year, the introduction of the sales tax on milk powder and the federal consumption tax on beverages also required an adjustment of the consumer price. However, due to deteriorating consumer purchasing power and competitive pressure, they have not fully passed on the above increases, which has had a negative impact on margins and net income, the company said.
The company’s financing costs increased 72% to Rs. 3.18 billion compared to Rs. 1.85 billion in the same period last year.
The company’s earnings per share decreased to Rs. 162.17 from Rs. 256.05. It has also announced a final cash dividend of Rs. 42 per share for the year.
The company remains committed to its vision of improving the quality of life for consumers by expanding its product base through continuous innovation and renovation.
