Karachi: Nestlé Pakistan Limited has reported a strong financial performance for the first quarter ended March 31, 2026, posting a 12.3% year-on-year increase in net profit after tax, supported by higher sales, improved operational efficiency, and the complete retirement of the company’s debt.
According to the company’s condensed interim financial statements, net sales rose to PKR 54.02 billion, up 7.2% from PKR 50.38 billion recorded in the corresponding period last year. The growth was driven by stronger brand investments and focused trade execution during the Ramadan and Eid seasons, despite the impact of an 18% GST levy introduced on much of the company’s product portfolio in July 2024.
Gross profit increased by 8.8% to PKR 20.88 billion, while operating profit climbed 7.1% to PKR 9.98 billion. The company maintained its operating profit margin at 18.5%, reflecting effective cost management and operational improvements.
Net profit after tax reached PKR 5.61 billion, compared with PKR 5.00 billion in the same quarter of 2025. Earnings per share (EPS) improved to PKR 123.74, up from PKR 110.23 a year earlier.
Nestlé Pakistan attributed the improved profitability to tighter overhead controls, value chain optimization initiatives, and investments in renewable energy projects, including solar and biomass facilities. These initiatives helped lower energy costs, reduce carbon emissions, and lessen dependence on fossil fuels. Improved working capital management also enabled the company to generate free cash, which was used to fully retire its outstanding debt, eliminating financing costs.
The detailed income statement shows finance costs declined significantly to PKR 96.8 million from PKR 178.2 million in the corresponding quarter last year, while profit before tax increased to PKR 9.52 billion.
Looking ahead, the company remains cautiously optimistic for the remainder of 2026, citing ongoing geopolitical uncertainty and potential volatility in energy and input costs. Management said it will continue investing in its core brands, strengthening market leadership, enhancing operational excellence, developing future-ready teams, and advancing sustainability initiatives.
