Reports gross profit of PKR 17.0 billion vs 20.4 billion in previous year
M Jahangir Hayat
LAHORE: Nestle Pakistan Limited has reported a decline of 29 percent in the profit earning during the six month January to June 2019 as compared to the same period last year 2018 as the company reported a revenue of PKR 57.7 billion vs PKR 62.5 billion in the same period last year.
The earnings per share of the company also fell down to Rs 98.61 from Rs 139.13 as profit after taxation fell down to Rs 4472 million in six months of 2019 against Rs 6310 million same period last year.
The company directors said that the macro-economic challenges during of2019 with dominated during fiscal and current pressures on the deficits affecting growth momentum. During the period, the Company reported a revenue collection of PKR 57.7 billion vs PKR 62.5 billion in the same period last year due to an overall economic slowdown and pressure on disposable income.
The company reported gross profit of PKR 17.0 billion vs 20.4 billion in the previous year; the decline is mainly due to higher input costs resulting from increase in commodity prices and devaluation of currency, higher energy prices and imposition of twater charge, the company directors clarified. Consequently net pro after tax dropped to PKR 4.5 billion from PKR 6.3 billion in the previous period, they said.
The directors vowed that despite the broader macro-economic challenges and higher 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 Pakistan Limited (“the Company”) is a public limited company incorporated in Pakistan and its shares are quoted on Pakistan Stock Exchange. Principally the Company is engaged in manufacturing, processing and sale of dairy, nutrition, beverages and food products including imported products. The Company has four manufacturing facilities located at Sheikhupura, Kabirwala, Port Qasim Karachi and Islamabad.