KARACHI: Nestlé Pakistan Limited has announced an interim cash dividend of Rs213 per share (2,130%) for the six-month period ended June 30, 2026, even as the company reported a marginal decline in net profit compared to the corresponding period last year.

According to the financial results approved by the company’s Board of Directors on July 23, 2026, Nestlé Pakistan posted a profit after taxation of Rs9.98 billion, down 4.3% from Rs10.42 billion recorded during the same period in 2025. Earnings per share (EPS) also slipped to Rs220.04, compared with Rs229.88 a year earlier.

Despite the decline in bottom-line earnings, the company delivered steady top-line growth. Net revenue from contracts with customers increased by 5.7% to Rs107.02 billion, up from Rs101.29 billion in the corresponding period last year. Gross profit also improved to Rs41.54 billion, reflecting resilient consumer demand and stable operating performance.

Operating profit rose to Rs19.63 billion, compared with Rs19.10 billion in the first half of 2025. Meanwhile, finance costs fell significantly to Rs174.6 million from Rs333.2 million, while other expenses also eased slightly. However, a higher income tax charge of Rs8.45 billion, compared with Rs6.82 billion last year, weighed on overall profitability and offset improvements in operating performance.

The Board approved an interim cash dividend of Rs213 per share, underscoring its confidence in the company’s financial strength and commitment to delivering value to shareholders despite the modest decline in earnings.

Separately, Nestlé Pakistan informed the Pakistan Stock Exchange that its Board has approved the incorporation of a local entity in Pakistan as a preliminary step related to the potential implementation of Nestlé S.A.’s previously announced global transaction involving its waters and premium beverages business. The company clarified that its water operations in Pakistan form part of this business segment and that any implementation remains subject to definitive agreements as well as corporate and regulatory approvals.

Nestlé Pakistan’s latest results highlight the company’s ability to sustain revenue growth and maintain strong shareholder returns despite higher taxation and a modest decline in net profit, while also positioning itself for potential strategic changes in its water business.