Nestlé Pakistan Limited has announced an interim cash dividend of PKR 223 per share (2,230%) following a strong profit performance in the first half of 2025, despite a dip in top-line revenue. The company posted a profit after tax of Rs10.42 billion for the six-month period ended June 30, 2025, up from Rs10.07 billion in the corresponding period last year.
Revenue declined by nearly 6% year-on-year, falling to Rs101.29 billion from Rs107.68 billion. However, the company managed to maintain gross profit levels at Rs39.53 billion, nearly flat compared to Rs39.76 billion last year, as a result of lower cost of goods sold and effective cost control. Distribution and administrative expenses were also reduced, contributing to a stable operating profit of Rs19.1 billion.
A significant drop in finance costs—from Rs1.57 billion in the same period last year to Rs333 million—further supported bottom-line growth. Earnings per share (EPS) rose to Rs229.88 from Rs222.05, reflecting improved profitability. Nestlé also reported a net increase in cash and cash equivalents of Rs2.92 billion during the period, supported by strong operating cash flows of over Rs7.5 billion.
The Board of Directors approved the financial statements at a meeting held on July 24, 2025, reaffirming shareholder value through a high interim dividend, underscoring the company’s cash generation capacity and financial resilience amid macroeconomic headwinds.
Since the announcement of the financials, the company’s share price has gone up by over 5.04% or Rs 377. This showcases a layer of positivity among the investors.
