Nestle Pakistan’s first quarter revenue drops 7.4%

KARACHI: Nestle Pakistan’s revenue for the three-month period ended March 31, 2025, stood at Rs50.4 billion, reflecting a decline of 7.4 per cent in net sales compared to the same period last year.

A press release said the decline in sales was mainly due to subdued demand as a result of the continued impact of sales tax introduced in the Finance Act 2024-25 and the high taxation incidence on the salaried class, which forms a substantial part of the company’s consumer base. However, a favourable product mix and operational efficiencies in the value chain led to an improvement in both gross profit and operating profit margins.

The results were announced following the Board of Directors’ meeting at the company’s head office in Lahore. The management maintains a cautious outlook for the rest of the year, in view of the continued pressure on consumer demand following the sales tax imposition, while continuing its efforts to ensure value chain optimisation and delight consumers with quality products, said the press release.