Karachi, September 6, 2024 – National Foods Limited on Friday reported a significant 26.35% decline in net profit for the fiscal year ended June 30, 2024, despite robust sales growth.
According to the company’s consolidated financial statement submitted to the Pakistan Stock Exchange (PSX), the net profit for FY2023-24 stood at Rs 2.79 billion, down from Rs 3.79 billion in the previous fiscal year.
This decrease in profit led to a drop in earnings per share (EPS), which fell to Rs 8.19 in FY2023-24, compared to Rs 13.62 in the preceding year.
Despite the profit dip, National Foods posted a remarkable 34.28% increase in sales, with revenue reaching Rs 86.37 billion for the year ended June 30, 2024, up from Rs 64.32 billion in the previous fiscal year. The company attributed this surge in sales to increased consumer demand and market expansion.
The board of directors recommended a final cash dividend of Rs 5 per share for FY2023-24, adding to the interim dividend of Rs 1.5 per share already paid during the year.
National Foods’ gross profit increased to Rs 23.57 billion in FY2023-24, compared to Rs 18.19 billion in the previous fiscal year, reflecting strong sales performance. However, the company’s expenses also surged significantly, eroding its bottom line.
Distribution and sales costs rose sharply to Rs 13.06 billion, up from Rs 9.91 billion in FY2022-23, as the company expanded its market presence and promotional activities. Administrative expenses also climbed, reaching Rs 4.26 billion, compared to Rs 2.77 billion in the prior fiscal year, driven by higher operating costs.
The company’s income tax payments dropped to Rs 577 million for FY2023-24, down from Rs 1.11 billion in the previous year, which contributed to the profit decline.
Despite these challenges, National Foods remains optimistic about its future growth prospects, with plans to continue expanding its product lines and market reach in the coming years.
The company’s financial results reflect both the opportunities and challenges faced by consumer goods firms in Pakistan, where inflationary pressures and rising costs are impacting profitability, even as sales remain strong.
