Despite high inflation and eroding purchasing power of the vast majority in Pakistan, consumer goods companies continued to flourish. This reflects their optimal investment strategy such as Nestle Pakistan having a robust plan to invest Rs. 3 billion in the current calendar year.
Nestle Pakistan had announced an investment plan in the outgoing year of 2022 in various stations which eventually extended to Rs. 3.4 billion, according to the official statistics published in biannual reports.
Accordingly, the company invested Rs. 1.225 billion in its Sheikhupura factory; Rs. 755 million in Kabirwala Factory; Rs. 519 million in distribution and sales channels; Rs. 180 million in water plants; and Rs. 790 million in other heads including renewable energy projects. Resultingly, the company reported an all-time high profit of Rs. 15 billion with year-on-year growth of 15% (Rs. 2.28 billion).
The bottom line is backed by higher sale volumes of its products mainly consisting of dairy, beverages, and mineral water. Despite the supply chain disruption due to floods, the company maintained consistent investment, resulting in solid growth for the brand.
It also launched various new products including LABAN drinking yogurt, MILKPAK Chocolate, Breakfast Cream, and MILO RTD in PET, new IRON + (BUNYAD), NESTLÉ CERELAC Nature’s Selection portfolio.
The company also made an investment plan of Rs. 3 billion in 2023 for operational reliability to meet consumer demands. Along with the growth in production and sales, the company is working to enhance the recycling of its packaging by over 100% by 2025.