Mixed 2025 for food giants amid economic strain |
Mixed 2025 for food giants amid economic strain
KARACHI: Amid rising concerns over consumers’ falling purchasing power and 44.7 per cent of people living below the national poverty line as per the World Bank threshold, the foreign and local manufacturers of food products enjoyed quite a stable 2025 in terms of sales.
However, manufacturers believe the business environment remains challenging despite macroeconomic stability, improving foreign exchange reserves, and ongoing IMF engagement. However, some eye stability in the business environment in 2026.
An increase in sales also suggest some improvement in employment, while some companies faced a drop in sales but witnessed increase in profit after tax (PAT).
As most companies do not disclose quantity of goods in their financial reports, they prefer reporting sales figures in rupees, which fluctuate depending on price changes of the goods.
Companies remain cautiously optimistic for 2026, focusing on brand investment, operational efficiency
Companies remain cautiously optimistic for 2026, focusing on brand investment, operational efficiency
Nestlé Pakistan posted revenue growth of 3 per cent to Rs199 billion in 2025 from Rs193bn in 2024, accompanied by an increase in PAT to Rs17.2bn from Rs15bn.
The growth was driven by a strong second half of the year, which saw a 14.3pc increase in top-line revenue. This recovery, supported by a favourable product mix, tighter overhead controls, and value chain optimisation initiatives, led to improvement in gross and operating profit margins.
Improved profitability coupled with effective working capital management helped generate free cash flows, which were used to settle third-party debt, resulting in lower finance costs and higher net profit compared to last........