National Foods Limited (PSX: NATF) has announced a dramatic financial turnaround for the quarter ended September 30, 2025. The company reported a profit after tax of Rs. 800.72 million, a sharp reversal from the loss of Rs. 216.24 million incurred in the same quarter last year.
Earnings per share (EPS) surged to Rs. 5.59, compared to a loss per share of Rs. 1.16 in 1QFY24.
Rewarding shareholders after the strong performance, the Board of Directors declared an interim cash dividend of Rs. 18.00 per share (360%).
The company’s core operations were the primary driver of this recovery. Net sales rose 14.3% to Rs. 10.18 billion, while the cost of sales remained nearly flat, increasing by just 0.25%. This strategic control over input costs led to a massive 45.1% expansion in gross profit, which reached Rs. 3.98 billion.
Performance Highlights (Rs. in million)
-
Net Sales:Â 10,182 (1QFY24: 8,909) |Â +14.3%
-
Gross Profit:Â 3,981 (1QFY24: 2,744) |Â +45.1%
-
Operating Profit:Â 1,183 (1QFY24: 188) |Â +528.2%
-
Profit After Tax:Â 801 (1QFY24: -216) |Â Turnaround to Profit
-
Earnings Per Share (EPS):Â Rs. 5.59 (1QFY24: Rs. -1.16) |Â +581.9%
The impressive gross profit growth directly fed into the bottom line, causing operating profit to skyrocket by 528.2% to Rs. 1.18 billion. The company also benefited from a substantial 49.0% reduction in finance costs.
Profitability was further supported by a Rs. 832.67 million contribution from discontinued operations. After accounting for taxation, the net profit from continuing operations stood at Rs. 800.72 million.
Total comprehensive income for the period, which includes foreign currency translation effects, reached Rs. 1.41 billion, a 90.5% increase year-on-year. The results underscore a highly successful quarter of operational efficiency and strategic growth for the food giant.
