Karachi: Nestlé Pakistan Ltd. disclosed its financial outcomes for the nine-month period ending September 30, 2024, on 24 Oct 2024. According to information available from the Pakistan Stock Exchange (PSX), the company has declared a notable second interim cash dividend of PKR 25 per share, which translates to 250%. This announcement was made during a board meeting held on October 24, 2024.

The detailed financial results highlighted a shift in revenue and expenses compared to the previous year. Revenue from contracts with customers stood at PKR 149.23 billion for the nine-month period of 2024, a slight decrease from PKR 151.15 billion recorded in the same period in 2023. Similarly, the cost of goods sold was reported at PKR 95.92 billion, marginally up from PKR 95.71 billion last year.

Gross profit for the company saw a decrease, moving from PKR 55.44 billion in 2023 to PKR 53.31 billion in 2024. The operating profit also followed this downward trend, registering PKR 24.47 billion, down from PKR 29.63 billion in the previous year.

In terms of expenses, distribution and selling expenses increased to PKR 24.24 billion from PKR 21.22 billion, whereas administration expenses were slightly up at PKR 4.59 billion. The finance cost for the period was PKR 2.28 billion, compared to PKR 1.96 billion in 2023, indicating increased borrowing costs.

Moreover, the company reclassified the general licensing fee (inclusive of related taxes) from cost of goods sold to distribution and selling expenses to facilitate better comparison and improved presentation. This reclassification, however, does not impact the financial results.

Profit before taxation was reported at PKR 20.79 billion, a decline from the PKR 25.04 billion reported in the prior year. After accounting for taxation, the profit after taxation stood at PKR 12.29 billion, down from PKR 15.79 billion in 2023. The earnings per share also reflected this decrease, with PKR 270.91 reported for the nine-month period, down from PKR 348.21 in the previous year.