NESTLÉ PAKISTAN LIMITED Condensed interim financial information for
the six months ended June 30, 2023
Good Food, Good Life
NESTLÉ PAKISTAN LIMITED
DIRECTORS' REVIEW
The Directors of Nestlé Pakistan Limited (the "Company") are pleased to submit the half-year report, along with the condensed interim financial statements of the Company for the six month period ended June 30, 2023.
Business Performance Review:
During the period under review, sales increased by 26.1% compared to the same period of the prior fiscal year, increasing from PKR 80,442 million to PKR 101,430 million. The increase in revenue can be attributed to broad growth across our product portfolio, complemented by a favorable portfolio mix, demand-generating activities, and pricing management initiatives.
Our operating profit also improved through the localization of raw and packaging materials, an increase in exports, a favorable product mix, and tighter control on fixed costs.
The financial performance for the six-month period is summarized below:
Jan - Jun 2023 | Jan - Jun 2022 | Change | |
PKR Million | PKR Million | ||
Sales | 101,430 | 80,442 | 26.1% |
Gross Profit | 34,399 | 26,163 | 31.5% |
% of sales | 33.9% | 32.5% | |
Operating Profit | 21,385 | 15,595 | 37.1% |
% of sales | 21.1% | 19.4% | |
Net Profit after tax | 10,985 | 7,695 | 42.8% |
% of sales | 10.8% | 9.6% | |
Earnings per share | 242 | 170 | 42.8% |
Future Outlook:
While the Pakistani rupee has shown some signs of recovery, we anticipate that external challenges such as high inflation, increased commodity prices, higher taxation, and limited foreign exchange availability for imports will continue to persist for the rest of the year. These factors may adversely impact consumption as a result of significant pressure on consumers' disposable income.
Despite these challenges, we are maintaining a cautiously optimistic view of the year ahead. The Company's efforts will focus on accelerating our exports to remain resilient and contribute to the national economy, while continuing to delight our consumers with quality products.
For and on behalf of the
Board of Directors
Joselito Jr Avanceña | |
Chief Executive Officer | Director |
Nestlé Pakistan | Nestlé Pakistan |
Dated: July 31, 2023 |
EY Ford Rhodes | UAN: +9242 111 11 39 37 (EYFR) |
Chartered Accountants | Tel: +9242 3577 8402 |
96-B/1, 4th Floor, Pace Mall Building | Fax: +9242 3577 8412 |
M.M. Alam Road, Gulberg-II | ey.lhr@pk.ey.com |
P.O. Box 104, Lahore-54660 | ey.com/pk |
INDEPENDENT AUDITOR'S REVIEW REPORT
TO THE MEMBERS OF NESTLE PAKISTAN LIMITED
REPORT ON REVIEW OF CONDENSED INTERIM FINANCIAL STATEMENTS Introduction
We have reviewed the accompanying condensed interim statement of financial position of Nestle Pakistan Limited as at 30 June 2023 and the related condensed interim statement of profit or loss and other comprehensive income, condensed interim statement of changes in equity, condensed interim statement of cash flows, and notes to the condensed interim financial statements for the six-month period then ended (here-in-after referred to as the "condensed interim financial statements"). Management is responsible for the preparation and presentation of these condensed interim financial statements in accordance with accounting and reporting standards as applicable in Pakistan for interim financial reporting. Our responsibility is to express a conclusion on these financial statements based on our review.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed interim financial statements is not prepared, in all material respects, in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting.
Other Matters
The figures of the condensed interim statement of profit or loss and condensed interim statement of comprehensive income for the three-month period ended 30 June 2023 and 30 June 2022 have not been reviewed, as we are required to review only the cumulative figures for the six-month period ended 30 June 2023.
The engagement partner on the audit resulting in this independent auditor's report is Arslan Khalid.
EY Ford Rhodes
Chartered Accountants
Lahore: 05 September 2023
UDIN: RR202310191EUBrG0A3X
A member firm of Ernst & Young Global Limited
Nestlé Pakistan Limited
Condensed Interim Statement of Financial Position
EQUITY AND LIABILITIES
Authorized capital
75,000,000 (2022: 75,000,000) ordinary shares of PKR 10 each
Issued, subscribed and paid up capital
Share premium - capital reserve
General reserve - revenue reserve
Cash flow hedge reserve - revenue reserve
Accumulated profits - revenue reserve
Long-term finances - secured
Lease liabilities
Deferred taxation
Retirement benefits
Current portion of long-term liabilities Short-term borrowings - secured
Running finance under mark-up arrangements - secured Trade and other payables
Contract liabilities
Interest and mark-up accrued
Customer security deposits - interest free Income tax payable
Unclaimed dividend Unpaid dividend
Contingencies and commitments
(Un-audited) | (Audited) |
Jun 30, 2023 | Dec 31, 2022 |
--- (Pak Rupees in '000) ---
750,000 750,000
453,496 453,496
249,527 249,527
280,000 280,000
- 2,289
11,462,649 4,784,934
12,445,672 5,770,246
7,961,405 | 6,500,000 |
1,296,830 | 1,378,203 |
- 2,290
3,610,689 3,387,912
12,868,924 11,268,405
9,122,923 9,087,234
519,260 519,260
132,727 3,756,401
48,516,944 43,739,673
732,183 766,154
460,383 297,289
231,131 224,225
4,235,370 2,100,895
85,790 87,756
8,688,150 6,034,213
72,724,861 66,613,100
98,039,457 83,651,751
ASSETS
Property, plant and equipment
Capital work-in-progress
Intangible assets
Deferred taxation
Long-term loans
Stores and spares Stock-in-trade Trade debts
Current portion of long-term loans Sales tax refundable - net
Advances, deposits, prepayments and other receivables Cash and bank balances
(Un-audited) | (Audited) | |
Jun 30, 2023 | Dec 31, 2022 | |
--- (Pak Rupees in '000) --- | ||
28,982,231 | 29,386,433 | |
1,809,050 | 2,612,423 | |
- | - | |
615,198 | - | |
281,641 | 209,395 | |
31,688,120 | 32,208,251 |
3,467,477 3,291,671
35,555,389 27,094,551
2,702,302 1,989,358
136,356 130,572
12,821,736 11,771,112
9,413,779 6,623,728
2,254,298 542,508
66,351,337 51,443,500
98,039,457 83,651,751
The annexed notes 1 to 12 form an integral part of these condensed interim financial statements.
KOMAL ALTAF | JOSELITO JR AVANCENA |
Chief Financial Officer | Chief Executive Officer |
SYED YAWAR ALI Chairman / Director
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Nestle Pakistan Ltd. published this content on 06 September 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 September 2023 07:17:05 UTC.
