Nestlé Pakistan reports Rs4.99bn Q1 profit, down 1.36% as sales dip

Revenue Falls 7.4%, Sales and profit slip as boycotts weigh in on brand KARACHI: Nestlé Pakistan Limited (PSX: NESTLE) posted a slight decline of 1.36% in its profit after tax for the quarter ended March 31, 2025, with earnings standing at Rs4.

99 billion versus Rs5.07 billion in the same period last year. Earnings per share edged down to Rs110.



23 from Rs111.75. The multinational food and beverage giant saw its revenue shrink by 7.

39% year-on-year to Rs50.38 billion, driven in part by weakening consumer sentiment and the ongoing boycott of Western brands perceived to be linked to the Israel-Gaza conflict. While the company did not directly reference the boycott in its financials, retail sources and market analysts suggest the campaign has dented sales in major urban markets.

Cost of goods sold dropped by 10% to Rs31.19 billion, providing some cushion. Consequently, gross profit only declined by 2.

79% to Rs19.19 billion. Distribution and selling expenses were trimmed by 4.

64%, though administrative costs surged 16.74% to Rs1.77 billion.

Operating profit stood at Rs9.32 billion, a 4.21% drop, while finance costs saw a sharp fall of 76.

63% to Rs178.2 million. Other income, however, plunged 70.

7% to Rs79.82 million, dragging down overall non-operating income. Despite stable profit before tax (Rs8.

47 billion, up just 0.04%), increased tax expenses led to the final dip in net profit. Nestlé Pakistan, a subsidiary of Swiss multinational Nestlé S.

A., is a market leader in packaged food and beverages, including dairy, infant nutrition, and bottled water. In 2024, the company reported an annual profit of Rs18.

36 billion, up nearly 17% year-on-year, despite cost pressures. However, rising consumer boycotts in solidarity with Gaza have posed fresh challenges in 2025, particularly affecting its flagship products. The company’s stock has remained relatively stable in recent months but faces mounting scrutiny amid shifting consumer preferences.

Save my name, email, and website in this browser for the next time I comment. Δ document.getElementById( "ak_js_1" ).

setAttribute( "value", ( new Date() ).getTime() );.