Jawad Ahmed ISLAMABAD, June 08 (INP-WealthPK): Nestle Pakistan Limited's revenues jumped 16.8% to Rs37.8 billion in the first quarter (January-March) of calendar year 2022 compared to Rs32.3 billion in the same period of last year. The unprecedented rise in sales was due to relaxation in Covid-19-related restrictions and normalisation of economic activities coupled with portfolio and pricing management, reports WealthPK. Operating profit for the period also improved due to favourable product mix, tighter control on fixed costs and better absorption of overheads. Quarterly Results Nestle Pakistan Limited is a public limited company founded in 1984 under the Companies Ordinance, which was replaced by the Companies Act, 2017. Nestle Pakistan, a subsidiary of Nestlé S.A, a Swiss-based public limited company, manufactures, processes and sells dairy, nutritional and food products and beverages, including imported items. Shareholding pattern As of December 31, 2021, affiliated companies, undertakings and related parties possessed 81.5% of the company’s total shares. Of which, the company's subsidiary – Societe Des Produits Nestlé S.A. – held 61.6% of the shares. Nearly 13% of the shares are owned by the general public (local), while the company’s directors, chief executive officer and their spouse(s) and minor children owned over 4% of the stock. Banks, development financial institutions and non-banking finance institutions collectively owned just over 1% of the stock. Company Turnover The company’s consolidated revenue increased by 12.2% to Rs133 billion in 2021 from Rs119 billion in the previous year. With this, the company’s net profit grew by 43.7% to Rs12.77 billion from Rs8.88 billion the previous year. Since 2016, the company's top line has largely been expanding at more variable rates, while profit margins have been fluctuating modestly between 2018 and 2020 as there was a major decline in 2019 followed by a rise again in 2020 and 2021. In 2017, the company's revenues climbed 8.1% year-on-year to Rs119 billion, up from Rs109 billion in 2016. Furthermore, the company’s profit-after-tax surged 23.7% to Rs14.6 billion in 2017 compared to Rs11.8 billion in 2016. In 2018, the company's turnover was Rs120.9 billion, up from Rs118.7 billion in 2017, representing a 1.86% increase over the previous year. On the other hand, higher input and energy costs as a result of the depreciation of the rupee against the US dollar and a global increase in commodity prices harmed the operating profit. The profit-after-tax for 2018 was Rs11.6 billion, down 20% from Rs14.6 billion the previous year. The major factors behind the decline were a significant rupee devaluation and increased commodity prices, which could not be fully compensated with pricing and cost-saving initiatives. In the year that ended on December 31, 2019, the company's overall revenues fell to Rs116 billion from Rs120.7 billion the previous year. A decline of 3.9% was mainly due to softness in consumer demand consequent to price increases across the portfolio. During the year, the company increased consumer prices to offset higher input costs resulting from significant increase in local and global commodity prices and energy costs impacted by rupee devaluation. Profit-after-tax was Rs7.35 billion in 2019, down from Rs11.6 billion the previous year. The burden of imposition of a sales tax on milk powders and a Federal Excise Duty (FED) on beverages that could not be passed on to customers had a negative impact on margins, resulting in a 36.7% decrease in net profit for the year 2019. Revenues rebounded in 2020, increasing by 2.4% to Rs118.8 billion from Rs116.0 billion during the corresponding year. Furthermore, the company’s profit-after-tax surged 21.9% to Rs8.9 billion in 2020 compared to Rs7.3 billion in 2019. Despite unprecedented situation caused by the Covid-19 pandemic, the company recorded a revenue growth of 2.4% through undisrupted supply and availability of products, innovation and renovation initiatives, numeric distribution expansion and investments behind the brands. Improvement in profitability was achieved through various cost-saving initiatives, optimisation projects and pricing management. In 2021, the company picked up a strong pace and the trajectory shows a very encouraging trend. During the period, the company’s net sales surged by 12.2% to Rs133.3 billion up from 118.8 billion in the previous year. The profit-after-tax was recorded at Rs12.8 billion compared with the profit of Rs8.9 billion in 2020. This was achieved through undisrupted supply and availability of products, numeric distribution expansion and innovation and initiatives supported by investments behind the brands. Volume growth, cost-saving initiatives across the value chain and portfolio and pricing management contributed to the improvement in profitability.