Nestle posts 52pc decline in Q3 earnings

KARACHI: Nestle Pakistan Ltd on Thursday reported a 52 per cent decrease in its quarterly earnings, due to a decrease in revenue.

In a statement to the Pakistan Stock Exchange (PSX), the company reported a net profit of Rs2.327 billion for the quarter that ended September 30, down from Rs4.805 billion during the same quarter last year. The company also announced a second interim cash dividend of Rs25 per share.

Earnings per share came in at Rs51.32, compared with earnings per share of Rs105.96 a year ago.The company said its revenue for the quarter dropped to Rs41.545 billion, compared with Rs49.723 billion a year earlier. The cost of sales remained at Rs27.952 billion from Rs32.460 billion.

For the nine-month period that ended September 30, the company announced a net profit of Rs12.285 billion, down from Rs15.791 billion. EPS for this period stood at Rs270.91, down from Rs348.21 per share. The company maintains a cautious outlook for the rest of the year while focusing on optimisation across the value chain.

A spokesperson for Nestle Pakistan said its sales for the nine-month period ended September 30, 2024, stand at Rs149.2 billion, reflecting a decline in growth by 1.3 per cent compared to the same period last year.

This was primarily influenced by the implementation of taxes in the Finance Act, which were passed on to consumers leading to price hikes and subsequently reduced demand. Challenges such as rising commodity and energy prices, as well as increased investment behind the brands, contributed to a decrease in operating profit.