National Foods Limited has reported higher sales for the quarter ended September 30, 2026, while its standalone and consolidated financial results show a decline in profit compared with the corresponding period last year. The company has also announced an interim cash dividend of Rs. 3 per share for shareholders.

According to the financial results submitted to the Pakistan Stock Exchange (PSX) on October 26, 2026, National Foods Limited recorded standalone net sales of Rs. 10.97 billion in the first quarter of fiscal year 2026-27, compared with Rs. 10.04 billion in the same period last year.

Despite the increase in revenue, the company’s standalone profit after tax declined to Rs. 916.36 million from Rs. 1.05 billion a year earlier. Earnings per share (EPS) also decreased to Rs. 3.93 from Rs. 4.49.

Higher Sales Offset by Rising Costs

The company’s standalone gross profit remained broadly stable at Rs. 3.82 billion, compared with Rs. 3.82 billion in the corresponding quarter of the previous year. However, selling and distribution expenses increased to Rs. 1.92 billion from Rs. 1.62 billion, putting pressure on operating performance.

Operating profit fell to Rs. 1.16 billion from Rs. 1.42 billion in the same period last year. Meanwhile, finance costs increased to Rs. 274.15 million from Rs. 216.57 million, adding to the pressure on earnings.

Higher other income provided some support, rising to Rs. 184.98 million from Rs. 62.49 million. Nevertheless, the increase was not enough to prevent a decline in quarterly profit.

Consolidated Profit Records Modest Growth

On a consolidated basis, National Foods Limited reported net sales of Rs. 11.07 billion for the quarter, up from Rs. 10.16 billion in the corresponding period last year.

Consolidated profit for the period increased to Rs. 888.24 million from Rs. 800.72 million. However, earnings per share declined to Rs. 3.81 from Rs. 5.59.

The comparison requires context because the previous year’s consolidated results included profit from discontinued operations of Rs. 832.67 million, which contributed significantly to reported earnings. Excluding that item, the latest consolidated profit reflects an improvement in the company’s continuing business performance.

Consolidated operating profit declined to Rs. 938.61 million from Rs. 1.18 billion, while finance costs increased to Rs. 325.74 million from Rs. 242.77 million. Higher other income, which reached Rs. 421.25 million compared with Rs. 64.56 million, helped support the bottom line.

Company Announces Rs. 3 Per Share Interim Dividend

Alongside its quarterly financial results, the company’s board announced an interim cash dividend of Rs. 3 per share, equivalent to 60% of the face value of each share. The dividend is in addition to any interim dividends already paid during the relevant period, as specified in the company’s announcement.

The share transfer books will remain closed from November 9 to November 11, 2026, inclusive. According to the notice, shareholders whose names appear in the register of members on the applicable entitlement date will qualify for the dividend, subject to the company’s stated terms and applicable requirements.

The announcement did not include any bonus shares or rights shares.

Cash Flow and Financial Position

National Foods’ standalone net cash generated from operating activities amounted to Rs. 958.74 million during the quarter, down from Rs. 2.16 billion in the corresponding period last year. On a consolidated basis, net cash generated from operating activities declined to Rs. 881.63 million from Rs. 4.50 billion.

The company continued to invest in its operations, with standalone purchases of property, plant and equipment amounting to Rs. 434.42 million during the quarter.

As of September 30, 2026, standalone total assets stood at Rs. 27.31 billion, compared with Rs. 27.10 billion at June 30, 2026. Consolidated total assets amounted to Rs. 52.49 billion, slightly below Rs. 52.64 billion at the end of the previous fiscal year.

Outlook for Investors

National Foods’ latest results present a mixed picture. Revenue growth on both standalone and consolidated bases demonstrates continued sales expansion, but rising distribution expenses and finance costs have weighed on operating profitability.

The improvement in consolidated profit also needs to be assessed alongside the previous year’s discontinued-operation gains. For investors, the company’s ability to manage costs, protect margins, generate operating cash and sustain revenue growth will remain important factors to monitor in the coming quarters.

The Rs. 3 per share interim dividend provides a direct return to eligible shareholders. However, investors should evaluate the dividend alongside earnings performance, cash flows and the company’s longer-term financial outlook before making investment decisions.