Various research studies have found that the food and beverage industry in any state; has an exclusive role in enlarging economic opportunity because it is important worldwide to human health and life needs. Industry experts revealed that the large firms understand both local and foreign markets, the nature of demand for foodstuffs, and therefore the bar that the poor must clear to market their goods. In addition, the key companies in the sector operate or strongly influence entire value chains from growers to consumers. That reach is chiefly powerful for creating economic opportunity because large firms can either link poor producers to the rest of the world or strengthen domestic cycles of wealth creation through mobilizing growers, producers, distributors as well as consumers. It is also proclaimed that the food and beverages firms enlarge economic opportunity in various ways, in both rich and poor regions of the world. A number of researchers have also revealed that the contribution of the industry in creating both economic and social value.
In Pakistan, Nestlé Pakistan is proud of its commitment with excellence in product safety and quality and to offering value and aims to be the leading Nutrition, Health and Wellness Company. As a socially responsible corporate, the company always focuses on environment friendly operations, ethical business practices and its responsibility towards the communities. Presently Nestlé Pakistan is the leading Food & Beverages Company with key focus on Nutrition, Health and Wellness and reaching the remotest of locations in the entire country to serve the consumers. Nestlé Pakistan also prides itself in being the leaders in Nutrition, Health & Wellness. The company’s long term policy is guided by Nestlé’s Corporate Business Principles which are in line with globally accepted best practices and ethical presentation culture.
| FINANCIAL HIGHLIGHTS (Rs in million) | |||
|---|---|---|---|
| Details | Jan-Sep 2017 | Jan-Sep 2016 | Change in % |
| Sales | 92,395 | 84,357 | 9.5 |
| Gross profit | 34,131 | 31,051 | 9.9 |
| % of sales | 36.9 | 36.8 | |
| Operating profit | 18,128 | 16,015 | 13.2 |
| % of sales | 19.6 | 19.0 | |
| Net profit after tax | 11,332 | 9,817 | 15.4 |
| % of sales | 12.3 | 11.6 | |
| Earnings per share | 249.88 | 219.47 | 15.4 |
| Source: Nestlé Pakistan | |||
Nestlé’s existing products increase by innovation and renovation while sustaining a balance in geographic activities and product lines. Long-term potential is never sacrificed for short-term presentation. The management’s priority is to bring the best and most relevant products to people, wherever they are, whatever their needs are, and for all age groups. Nestlé Pakistan operates in many ways but people, products and brands are the main flag bearers of the Company’s image, and the company continues to improve the quality of life of Pakistanis.
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Nestlé Pakistan mentioned in its financial statement for the nine months period ended September 30, 2017 that the sales revenue increased by Rs8.0 billion, yielded a growth of 9.5 percent largely driven by volume. The company’s export sales during the period reached at Rs3.7 billion recording a growth of 3.6 percent. Nestlé Pakistan delivered a Gross Margin of 36.9 percent on the back of improvement in product mix and optimization of the value chain through Nestlé continuous Excellence (NCE) measures. The company delivered an operating profit of 19.6 percent. The rise is mainly owing to enhanced gross margin, operational savings and effective cost management.
Furthermore, Nestlé Pakistan’s net profit-after-tax (PAT) reached at Rs11.3 billion, recording a strong growth of 15.4 percent.
Conclusion
The company expects a positive outlook on growth and earnings, however, the management does foresee certain external developments namely currency risk, worldwide products cost rises and fiscal budget pressures which could impact future results.