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Nestle Pakistan posts profit growth in Q1

By Our Correspondent
April 25, 2026
This representational image shows the companys logo at a Nestle plant on September 28, 2020. — Reuters
This representational image shows the company's logo at a Nestle plant on September 28, 2020. — Reuters

KARACHI: Nestlé Pakistan reported solid earnings growth for the first quarter of 2026, supported by higher sales, improved margins and debt retirement.

The company posted net sales of Rs54 billion for the three months ended March 31, up 7.2 per cent year-on-year (YoY). Growth was driven by increased brand investment, targeted trade execution and higher demand during Ramazan and Eid.

Profitability improved as gross and operating margins rose 8.8 per cent and 7.1 per cent respectively compared to the same period last year. Net profit increased 12.3 per cent YoY, aided by stronger margins and effective working capital management.

The company also generated sufficient free cash to fully retire its debt, eliminating financing costs during the quarter.The results were announced after a board meeting at the company’s head office. Nestle Pakistan maintains a cautious outlook for 2026, citing geopolitical uncertainty and potential volatility in energy and input costs. The company said it will continue to invest in brands, improve operational efficiency and advance its sustainability agenda.