Profit after tax of Nestle Pakistan increases

The profit after tax of Nestle Pakistan Limited has increased by 13.5 percent to Rs 4.668 billion in the year ended December 31, 2011 as compared to Rs 4.112 billion earned in the corresponding period in 2010. The company's earning per share increased to Rs 102.94 in the period under review against Rs 90.69 in the same period a year back.
The board of directors of the company in its meeting held on Wednesday recommended a final cash dividend for the year ended December 31, 2011 at Rs 40.00 per share, ie 400 percent. This is in addition to interim dividend already paid at Rs 25.00 per share, ie 250 percent.
According to the financial results sent to Karachi Stock Exchange, the company's profit before taxation increased to Rs 6.502 billion in the year 2011 against Rs 5.696 billion earned in 2010. The company also issued its statement which says, Nestle Pakistan announced Topline growth of 26 percent for the year ended December 31, 2011 at the meeting of the board of directors held at Lahore on Wednesday.
During the year, the company invested Rs 8.9 billion in various projects related to capacity enhancement and infrastructure improvement. "Committed to the country, Nestle Pakistan plans to invest approximately Rs 14 billion in 2012 for mild collection field development, upgrading of existing production facilities and increase in production capacity, ensuring that our quality and food safety processes continue to be our top priority", the company said.
Announcing the results, Ian Donald, Managing Director Nestle Pakistan Limited, thanked company's customers and consumers who have trust in company's products and continued to provide sustained support in ensuring the progress of the Company. He said that the company is also immensely proud of and is thankful to employees for their commitment and passionate efforts, loyalty and dedication. "We greatly value the support and cooperate received from our esteemed suppliers, trading partners, bankers and all stake holders who are helping and contributing towards the continued growth of our company and contributing to positively enhancing the quality of life of the people of Pakistan", he added.
He said the major new product launches during 2011 included Milkpak powder milk, Nesvita powder milk, Milkpak flavoured milk, NESFRUITA juice and Fitness cereal. Ongoing cost management and controlling initiatives have been taken to partially offset the negative impact of escalating input costs, he added.
Nestle Pakistan also undertook several community support initiatives worth Rs 57.1 million in areas related to nutrition, water and rural development as part of creating shares value philosophy and were also recognised by the Pakistan Centre Philanthropy (PCP) amongst the top ten companies in Pakistan for corporate philanthropy. In addition to this the procurement of fresh milk for Rs 19.1 billion in 2011 has directly contributed to the rural economy.
"Despite the challenges being faced in the country, the management of the company continues to have a long term optimistic outlook for our business", the company said. "We are hopeful that economic prospects of the country will improve in the future. We are still confident in the strong potential of Pakistan fuelled by its growing and youthful population", he said. Nestle is committed to Pakistan and to bringing products to consumers that deliver nutrition, health and wellness, the company said.