Nestle Pakistan Sees Revenue Dip Amid New Tax Pressures

Lahore: Nestle Pakistan announced its financial results for the first half of 2025, revealing a revenue decline to PKR 101.3 billion, down 5.9% from the same period last year. This drop has been attributed to the introduction of sales tax on most of its product portfolio under the Finance Act 2024-25, which has exerted pressure on consumer demand.

Despite the revenue setback, the company reported improvements in gross and operating profit margins. These gains were driven by a favorable product mix and efforts to optimize energy costs and operational efficiencies. Additionally, a reduction in finance costs contributed to a 3.5% increase in net profit.

The financial results were released after a Board of Directors meeting at the company’s head office.

Moving forward, the management expressed cautious optimism about the company’s performance and growth prospects for the rest of the year. The focus will remain on optimizing the value chain and maintaining the delivery of high-quality products to meet consumer expectations amid continued demand challenges.

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