National Foods expects gross margins to remain around 40%, plans more than 25 new products and aims to double international sales to approximately $32 million by 2030.
National Foods Limited (NATF) expects revenue growth of around 15% in FY27, while rising freight costs and Middle East tensions could weigh on export volumes, according to a research note by Topline Securities Limited.
The company shared its outlook during its 55th Annual General Meeting on Monday, following the announcement of its FY26 financial results.
Management expects gross margins to remain around 40% in FY27, supported by an improved pricing strategy and better inventory management. However, margin pressure recorded in the fourth quarter of FY26 was attributed to lower sales volumes following price increases.
The company expects inflationary pressures to continue affecting consumer demand and sales volumes.
Freight costs have risen sharply, increasing from approximately $500–$600 to around $5,000 per container, management highlighted. Ongoing tensions in the Middle East could further constrain export growth.
Despite these challenges, National Foods aims to increase international sales to approximately $32 million by 2030, potentially doubling its current level.
The company currently operates a logistics hub in Canada and plans to establish two additional hubs in the United Kingdom and the United States to strengthen its international distribution network.
National Foods has set an annual capital expenditure target of around Rs4 billion, although spending could exceed this level to support expansion. Management is also optimistic about launching more than 25 new products, alongside extending existing product lines and exploring new categories.
The company is benefiting from tax savings available to its facility operating within a Special Economic Zone (SEZ).
Meanwhile, proceeds from the sale of its 50.5% stake in A1 Cash & Carry remain parked in liquid short-term investments targeting annual returns of around 8% or higher. Management said the funds are being held temporarily as the company evaluates potential greenfield and brownfield investment opportunities.
Topline Securities maintained its Buy recommendation on NATF, citing an estimated FY27 price-to-earnings ratio of 8.7 times and a dividend yield of 4%.