Nestlé Pakistan profit plunges 14.75pc in 1Q2020

LAHORE: The Board of Directors of Nestlé Pakistan Limited (Nestlé) met on Thursday to review the company’s performance and announce its financial results for the quarter ended March 31, 2020.

As per company’s financials, the food giant posted a profit after tax (PAT) of Rs1.939 billion as compared to the PAT of Rs2.274 billion during the same period last year, showing a decrease of 14.75pc. During the period under review, the company reported a gross profit of Rs8.840 billion as compared to gross profit of Rs8.770 billion during the same period last year, showing an increase of 0.8pc.

During the quarter ended March 31, Nestlé’s sales stood at Rs29.883 billion as compared to sales of Rs29.136 billion during the same period last year, showing an increase of 2.56pc. During the quarter, the company’s distribution and selling expenses decreased from Rs3.791 billion in 2019 to Rs3.570 billion, showing a decrease of 5.81pc. The Nestlé administration expenses during the period clocked in at Rs1.216 billion as compared to administration expenses of Rs951.537 million during last year, showing an increase of 27.82pc.

The food giant’s operating profit during the quarter ended March 31, 2020 stood at Rs4.054 billion as compared to operating profit of Rs4.027 billion, showing an increase of 0.65pc. During the period under review, Nestlé’s finance cost increased from Rs727.333 million in 2019 to Rs1.026 billion, showing an increase of 41pc.

The company’s other operating expenses stood at Rs400.247 million as compared to other operating expenses of Rs237.708 million during the same period last year, showing an increase of 68.4pc. During the quarter, Nestlé’s other income decreased from Rs85.718 million in 2019 to Rs62.388 million, showing a decrease of 27.2pc.

Nestlé reported a profit before tax of Rs2.689 billion for the quarter ended March 31,2020 as compared to profit before tax of Rs3.148 billion last year, showing a decrease of 14.6pc. During the period under review, the company’s earnings per share stood at Rs42.76 as compared to Rs50.15 during the same period last year, showing a decrease of 14.7pc.