Nestlé Pakistan Posts Profit, Declares Interim Dividend

Islamabad 24: Nestlé Pakistan Limited has announced an interim cash dividend of PKR 223 per share (2,230%) following a strong profitability showing for the first half of 2025, despite a modest dip in revenues.

According to news reports for the six-month period ending June 30, 2025, the company recorded a profit after tax (PAT) of PKR 10.42 billion, exceeding last year’s PKR 10.07 billion for the same period—a 3.4% year-on-year increase.

However, top-line figures softened: Nestlé Pakistan reported net sales of PKR 50.4 billion in Q1 2025, marking a 7.4% decline compared to Q1 2024. This revenue dip reflects lingering pressure from inflation, shifting consumer patterns, and tax changes.

Dividend History and Payouts

• The interim dividend of PKR 223 per share represents a significant boost from the prior PKR 136 per share interim payout in 2024.
• Nestlé Pakistan’s total annual dividend for 2024 was PKR 166 per share, yielding approximately 2.2%.
• With a payout ratio nearing 99%, the company underscores its commitment to returning value to shareholders.

Financial Resilience Amid Headwinds
Despite softer sales, headwinds such as rising cost of goods, distribution expenses, and increased taxes had limited impact on profitability. While full-year 2024 PAT slid 10.2% to PKR 14.8 billion, the interim results for 2025 reflect a rebound.

READ MORE: Nestlé Pakistan Targets $50 Million in Exports by 2030

Strategic Outlook
Nestlé Pakistan continues investing in capacity and sustainability—allocating PKR 4.4 billion in 2024 to projects including factory upgrades and water treatment initiatives. The solid interim profits and hefty dividend reinforce confidence in the company’s resilience and strategic approach, even as it confronts macroeconomic and operational uncertainties.

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