ISLAMABAD: Consumer goods giant, Nestlé Pakistan Limited (Nestlé), earned a record profit of over Rs 15 billion in 2022. The company made the disclosure when it announced its financials for the year ended December 2022 to the Pakistan Stock Exchange (PSX) on Monday.
Despite the tough macroeconomic challenges in the country such as ever-rising inflation, Nestlé’s net sales grew 22% in the previous year to reach Rs 163 billion. The company’s gross profit also grew 23% year on year (YoY) to Rs 49.6 billion. Profit from operations grew 24% to Rs 26.78 billion, while profit before tax grew 27% to Rs 22.8 billion.
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Nestlé’s profit after tax (PAT) grew 18% to Rs 15 billion which also led to an 18% increase in Earnings per share to Rs 331.86 per share. This is the highest ever recorded PAT of Nestlé Pakistan. The last highest recorded profit was in 2017 when the company earned a net profit of Rs 14.6 billion.
The consumer goods company also announced a final cash dividend of Rs 95 per share, in addition to Rs 240 per share interim cash Dividend already paid during the year 2022. As of Monday, the company’s share is trading at a price Rs 5,300 per share.
Nestlé Pakistan Limited is a public limited company incorporated in Pakistan. The company is principally engaged in the manufacturing, processing and sale of dairy, nutrition, beverages and food products including imported products. It is headquartered in Lahore, with four production facilities across the country. Factories in Sheikhupura and Kabirwala are multi-product, whereas the ones in Islamabad and Karachi are water factories.
Around 78.5% of Nestlé Pakistan’s product portfolio comprises dairy and nutrition products such as Nestlé Milk Pak, EveryDay, Cerelac, Lactogrow etc. The remaining 21.5% includes beverages such as Nestlé Pure Life, Milo, Fruita Vitals etc.
Nestlé Pakistan Ltd. is a subsidiary of Société des Produits Nestlé SA (SPN) a company based in Vevey, Switzerland. The company has been operating in Pakistan since 1988 under a joint venture with Milk Pak Ltd, which was taken over by the Swiss company in 1992. For the last several years, Nestlé Pakistan has been consistently placed among the top companies of the Pakistan Stock Exchange.
Société des Produits Nestlé SA owns 61.6% shareholding in Nestle Pakistan Limited. The other two significant shareholders of the company include IGI Investments (9.75% shareholding) and Packages Limited (8.05% shareholding).