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Tuesday, July 16, 2024

Nestlé Pakistan announces financial results – boasts 29.8 billion in revenue

Despite COVID-19 lockdown, Nestlé has posted a revenue of PKR 29.8 billion which is a whopping increase of 2.6% compared to the first quarter of last year. What makes this multi national giant to sustain itself?

Recently, Nestlé Pakistan announced their financial results for the first quarter of 2020. They posted a revenue of PKR 29.8 billion – an increase of 2.6% compared to the same period last year. This surprising success was achieved despite many difficulties met due to the COVID-19 crisis.

The lockdown severely impacted the sales of juices and water as well as products for out-of-home channel. In addition, Afghanistan border closure had a major impact on the exports. Net profit for the same period has declined mainly due to higher financing cost and currency devaluation impact. These quarterly results were announced following a Board of Directors’ meeting at the Company’s Head Office.

According to a press release, the company has pledged to prioritize several responsibilities amidst the crisis. These include health and wellbeing of their employees, business continuity and supporting communities with relief efforts.

Read more: Nestlé Pakistan steps up response to COVID-19 pandemic

Comparison with the company’s revenue last year

In the period of January-March, the company’s sales declined to Rs29.1 billion from Rs32.8 billion in the corresponding period a year earlier. More precisely, Nestle Pakistan’s profit fell around 33 percent year-on-year to Rs2.2 billion for the quarter ended on March 31, 2019, translating into earnings per share (EPS) of Rs50.15.

They say that the decline was due to higher input and energy costs and the imposition of sales tax and federal excise duty on milk powder and beverages. Despite the tough economic environment, the management remains committed to meeting consumer expectations. They do this by offering quality and value-added products while remaining focused on the optimization of the value chain.

Nestlé Pakistan’s role in COVID-19 prevention

Nestle Pakistan has stepped up to meet the nutritional needs of both, the affected patients and frontline workers in this crisis. The company has committed a whopping amount of Rs 100 million in its national response to the COVID-19 pandemic. As of today, Pakistan is housing 16,473 confirmed novel coronavirus patients all over the provinces, with 361 confirmed deaths.

To help further bludgeon the current coronavirus crisis, they have also partnered with Pakistan Red Crescent Society (PRCS); which has an unmatched presence and expertise in providing first-aid, emergency response and epidemic control. As part of this partnership, Nestlé Pakistan has extended support to PRCS for promoting the well-being of all age groups during the pandemic.

The beverage giant will play their role by contributing PKR 5 million to a dedicated fund. This fund is will help install hand hygiene stations at public places, along with quarantine and health facilities across Balochistan and KPK.

According to CEO Nestle Pakistan, Samer Chedid, the company’s employees united to play their role as well. “We have invited all our employees to step forward and donate one day’s salary for supporting people going through hard times. The donation intimations by employees will match 1:1 by Nestlé Pakistan.”

Read more: Nestlé Pakistan pledges to play its role for better water management

Nestlé Pakistan is working tirelessly to ensure the provision of food and beverage products to consumers across Pakistan. They are following the strategic roadmap laid out by Prime Minister Imran Khan and respective provincial leaderships. In fact, the multinational giant has also joined hands with reputable NGOs. Through this, they will cater to COVID-19 emergency appeals for deserving people across Pakistan.