Karachi, March 26, 2025 – Nestlé Pakistan has attributed its revenue decline for the calendar year 2024 to the higher rate of General Sales Tax (GST). The company cited the increased tax burden as a key factor impacting its financial performance.
On Wednesday, the Board of Directors of Nestlé Pakistan Limited submitted the Annual Report, along with the audited financial statements for the year ended December 31, 2024, to the Pakistan Stock Exchange (PSX). The report outlined the company’s financial performance, investment projects, and future outlook.
Financial Performance
Nestlé Pakistan reported a 3.69% decline in revenue for 2024 compared to the previous fiscal year. The company attributed this drop primarily to the implementation of an 18% Sales Tax on the majority of its product portfolio, introduced through the 2024-25 Finance Bill. The increased tax burden was passed on to consumers through price adjustments.
Despite lower revenues, Nestlé Pakistan managed to improve its gross profit margin through a favorable product mix and enhanced value chain efficiencies. The company continued to invest in its brands to sustain volumes, but this, coupled with reduced topline growth, led to a decline in operating profit.
Nestlé Pakistan remains committed to its mission of “Good Food, Good Life,” focusing on innovation and sustainability while ensuring product quality and consumer satisfaction. Despite market challenges, the company continues to develop new products and implement measures to reduce its environmental footprint.
Investment Projects
In 2024, Nestlé Pakistan invested PKR 4.4 billion across multiple projects, particularly in sustainability and operational efficiency. Key investments included:
• PKR 2,026 million in the Sheikhupura Factory
• PKR 937 million in the Kabirwala Factory
• PKR 511 million in water plants
• PKR 487 million in distribution and sales networks
• PKR 441 million in other projects
Principal Risks & Future Outlook
Nestlé Pakistan faces risks such as rising input costs due to inflation, currency devaluation, and macroeconomic uncertainties affecting consumer demand. Additionally, further increases in tax rates could pose additional challenges.
Looking ahead to 2025, Nestlé Pakistan maintains a cautious outlook, focusing on brand investment, supply chain optimization, workforce development, and sustainability efforts to drive long-term growth and remain a force for good in the industry.