Karachi: Nestle Pakistan Limited has announced its financial results for the year ending December 31, 2024, revealing a mixed performance. The Board of Directors, in a meeting held on February 13, 2025, approved the audited financial statements and declared a substantial final cash dividend of PKR 30 per share, equating to 300%. This is in addition to the PKR 136 interim cash dividend already paid during the year 2024.
The financial results highlighted a slight decline in revenue from contracts with customers, which stood at PKR 193.21 billion in 2024, down from PKR 200.61 billion in 2023. Correspondingly, the cost of goods sold decreased to PKR 123.68 billion from PKR 129.85 billion. Despite the reduction in costs, the gross profit witnessed a dip, settling at PKR 69.52 billion compared to PKR 70.76 billion in the previous year.
Operating profit experienced a more significant decline, decreasing from PKR 34.55 billion in 2023 to PKR 29.55 billion in 2024, primarily due to increased distribution and selling expenses and administration costs. The finance cost slightly reduced to PKR 2.59 billion, while other expenses decreased notably to PKR 2.07 billion.
According to information available from the Pakistan Stock Exchange (PSX), the company’s profit before taxation dropped to PKR 25.28 billion from PKR 28.99 billion in 2023, with profit after taxation also showing a decrease, closing at PKR 14.81 billion compared to PKR 16.49 billion the previous year. Earnings per share for the year were recorded at PKR 326.53, down from PKR 363.68 in 2023.
Cash flow from operating activities showed a positive trend, with net cash generated at PKR 31.59 billion, a significant increase from PKR 18.25 billion in the prior year. This was achieved despite a decrease in cash generated from operations, attributed to favorable working capital changes.
However, the company reported a net cash outflow from investing activities amounting to PKR 4.31 billion, largely due to the purchase of property, plant, and equipment. In terms of financing activities, Nestle Pakistan experienced a net cash outflow of PKR 23.68 billion, a significant increase compared to PKR 13.65 billion in 2023, driven by the repayment of long-term loans and substantial dividends paid.
As of December 31, 2024, Nestle Pakistan’s cash and cash equivalents position improved to PKR 1.66 billion from a negative PKR 1.94 billion at the start of the year, reflecting the company’s efforts to enhance liquidity amidst challenging market conditions.
Nestle Pakistan remains a key player in the designated market category, continuing to navigate the complexities of the economic landscape while delivering shareholder value through strategic financial management and dividend declarations.