Nestlé Pakistan announced its financial results for the calendar year 2019.
The company posted a profit of Rs. 7.35 billion, showing a decrease of 36.70% as compared with 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 goods sold remained almost flat at Rs. 82.61 billion which took the gross profits to Rs. 33.34 billion, down by 14.10% as compared with Rs. 38.81 billion posted in 2018.
During the year, the imposition of Sales Tax on milk powder and Federal Excise Duty on beverages also necessitated an adjustment in the consumer price. However, due to the deteriorating purchasing power of the consumers and competitive pressures, they did not fully pass on the above increases which negatively impacted the margins and net profit for the year, noted the company.
The finance cost of the company increased by 72% to Rs. 3.18 billion as compared to Rs. 1.85 billion recorded in the same period last year.
Earnings per share of the company reduced 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 enhancing the quality of life of consumers by expanding its product base through continuous innovation and renovation.
The major new product launches during 2019 included: NESTLÉ EVERYDAY Lite Tea Creamer, NESTLÉ Fruit Yogurt, NESTLÉ MILKPAK Whipping Cream, NESTLÉ FRUITA VITALS Royal Mangoes, NESCAFÉ Ready-to-Drink Chilled Latte, NESTLÉ LACTOGROW, NESTLÉ PURE LIFE Active, NESCAFÉ Roast & Ground Coffee, and NESTEA Honey Green Tea.