Nestlé Pakistan Limited has announced its financial results for the first half of 2019. The company’s profits decreased by 29.12% to Rs. 4.4 billion as compared with Rs. 6.3 billion in the same period of last year.
The decrease in profits is primarily due to higher input costs resulting from an increase in commodity prices and currency devaluation, higher energy costs, and the imposition of water charge.
The company recorded sales of Rs. 57.7 billion, showing a decrease of 7.66% from Rs. 62.58 billion over the same period of last year. Sales were down due to an overall economic slowdown in the country and pressure on disposable income. The cost of goods sold by the company increased to Rs. 40.77 billion, up by 3.30%.
However, the company’s finance cost also surged 81.8% as a result of an increase in interest rates.
Along with the result, the Board of Directors of Nestlé also announced an Interim Cash Dividend of Rs. 90 per share for the period ended i.e. 900%. Earnings per share of the company decreased to Rs. 98.61 from Rs. 139.13.
Nestlé in its press release stated that,
Despite the broader macro-economic challenges and high inflationary environment the management remains focused on meeting the consumer expectations by offering quality and value-added products and managing cost pressures through value chain optimization initiatives and tighter controls on overheads.
Nestlé’s script at the exchange was closed at Rs. 6166.67, down by Rs. 20.94 or -0.34% with a turnover of 60 shares on Monday.
| Profit and Loss Account for the six months period ended June 30, 2019 (Amounts in thousands except earnings per share) | |||
|---|---|---|---|
|
Rs Jun-2019 |
Rs
Jun-2018 |
% Change | |
| Sales – net | 57,789,111 | 62,585,776 | -7.66% |
| Cost of goods sold | (40,774,935) | (42,163,200) | -3.29% |
| Gross Profits | 17,014,176 | 20,422,576 | -16.69% |
| Distribution and selling expenses | (6,939,820) | (7,837,854) | -11.46% |
| Administration expenses | (1,659,051) | (1,629,875) | 1.79% |
| Operating profit | 8,415,305 | 10,954,847 | -23.18% |
| Finance cost | (1,480,451) | (814,169) | 81.84% |
| Other expenses | (712,473) | (848,843) | -16.07% |
| Other income | 158,147 | 120,562 | 31.17% |
| Profit before taxation | 6,380,528 | 9,412,397 | -32.21% |
| Taxation | (1,908,380) | (3,102,789) | -38.49% |
| Profit after taxation | 4,472,148 | 6,309,608 | -29.12% |
| Earnings per share – Basic and Diluted (Rupees) | 98.61 | 139.13 | -29.12% |
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I want nestle be confiscated. They have been selling water without paying back Pakistan anything.