Lahore: Nestle Pakistan Limited announced a significant rise in profitability during its recent analyst briefing, highlighting a 16% year-over-year increase in net profit to PkR17.2 billion, compared to PkR14.8 billion in the same period last year. This growth, as indicated by an earnings per share (EPS) increase from PkR326.5 to PkR380.2, was attributed mainly to a reduction in finance costs.
According to AKD Securities Limited, Nestle's revenue increased by 3% year-over-year to PkR199.1 billion. This was largely driven by an 8% increase in sales, facilitated by the normalization of the Goods and Services Tax (GST) impact. However, the company faced a 31% decline in exports, primarily due to the closure of the Afghan border, which affected trade routes.
The briefing also revealed a substantial decrease in finance costs, which fell by 78% to PkR2.0 billion. This reduction was largely due to easing interest rates and a significant 65% reduction in total debt, which dropped to PkR1.9 billion by the end of December 2025. The improvement in the company's working capital position was a contributing factor to these financial results.