Lahore, April 23, 2026: Nestlé Pakistan Limited has reported a strong start to 2026, with its profit after taxation increasing by more than 12% during the three-month period ended March 31, 2026.

According to the company’s unaudited interim financial results, Nestlé Pakistan recorded profit after taxation of Rs5.61 billion, compared with Rs5.00 billion in the same period last year. This represents an increase of approximately 12.3% year-on-year.

Revenue and operating profit improve

The company’s net revenue from contracts with customers rose to Rs54.02 billion during the quarter, up from Rs50.38 billion a year earlier. The increase translates into revenue growth of around 7.2%.

Gross profit also improved, reaching Rs20.88 billion, compared with Rs19.19 billion in the corresponding quarter of 2025. Meanwhile, operating profit increased to Rs9.98 billion from Rs9.32 billion.

Nestlé Pakistan’s finance costs declined substantially to Rs96.84 million, compared with Rs178.20 million in the same period last year. At the same time, other income increased sharply to Rs484.43 million from Rs79.82 million.

As a result, profit before income tax climbed to Rs9.52 billion, compared with Rs8.47 billion in the first quarter of 2025.

Earnings per share climb

The improvement in profitability was also reflected in earnings per share. Basic and diluted EPS increased to Rs123.74, compared with Rs110.23 in the same quarter of 2025.

The higher earnings provide a positive indication of the company’s ability to maintain profitability despite rising operating costs. Distribution and selling expenses increased to Rs8.96 billion from Rs8.11 billion, while administration expenses rose to Rs1.95 billion from Rs1.77 billion.

Balance sheet remains sizeable

Nestlé Pakistan’s total assets stood at Rs104.04 billion as of March 31, 2026, compared with Rs93.89 billion at the end of December 2025.

Current assets increased notably during the quarter, with stock-in-trade rising to Rs32.50 billion from Rs24.82 billion. Trade debts also increased to Rs4.64 billion from Rs3.18 billion, while cash and bank balances rose to Rs5.28 billion, compared with Rs3.91 billion at year-end.

On the equity side, accumulated profits increased from Rs20.29 billion at December 31, 2025, to Rs25.90 billion by March 31, 2026. Total equity consequently rose to Rs26.88 billion.

Operating cash flow comes under pressure

While the earnings picture remained positive, the cash-flow statement showed some pressure during the quarter.

Net cash generated from operating activities fell to Rs701.2 million, compared with Rs4.53 billion in the same period last year. The company reported significant working-capital movements, including an Rs8.11 billion increase in stock-in-trade and an Rs3.19 billion increase in advances, deposits, prepayments and other receivables.

The company nevertheless ended the quarter with Rs5.28 billion in cash and bank balances, supported in part by proceeds from the disposal of short-term investments and interest income received during the period.

A profitable opening quarter

Overall, Nestlé Pakistan’s first-quarter results show a company that continued to grow revenue and strengthen profitability in the opening months of 2026. The double-digit increase in net profit and EPS stands out as the key feature of the results, although the decline in operating cash generation and higher working-capital requirements will remain important areas to watch.

The financial statements were approved by the company’s Board of Directors at its meeting held on April 23, 2026.