Nestlé Pakistan Limited has announced its financial results for the first nine months of 2019.
The company posted a profit of Rs. 5.46 billion, down 36.66% as compared to a profit of Rs. 8.62 billion recorded last year. For the third quarter alone, the company reported a profit of Rs. 992 million, which was down by 57.06% as compared to Rs. 2.31 billion in the same quarter last year.
The decline was due to higher input and energy costs and the imposition of sales tax and federal excise duty on milk powder and beverages.
Nestlé Pakistan Limited recorded better sales for Q3 2019, posted at Rs. 29.26 billion, showing a 3.4% sales growth as compared to the same period last year despite broader macro-economic challenges and a high inflationary environment.
The growth in sales was thanks to focused demand generation activities, the introduction of new products and continuous investment in brands, stated a press release by the company.
The revenue of the company was recorded at Rs. 87 billion for Q1-Q3 2019, with a decrease of 4.2% as compared to the same period last year.
Despite the tough economic environment, the management remains committed to meeting consumer expectations by offering quality and value-added products while remaining focused on the optimization of the value chain.
For the nine-month period, the earnings per share of the company declined to Rs. 120.49 as compared to Rs. 190.27. The company also announced a 2nd cash dividend of Rs. 20, i.e. 200% which is in addition to interim dividend already paid at Rs. 90 per share.