Nestle Pakistan : Transmission of Quarterly Report for the Period Ended March 31, 2022

Condensed interim financial information for the three months ended March 31, 2022

Good Food, Good Life

DIRECTORS' REVIEW REPORT TO THE SHAREHOLDERS

The Directors of Nestlé Pakistan Limited (the "Company") are pleased to submit the first-quarter report, along with the condensed interim financial statements of the Company for the three months period ended March 31, 2022.

Business Performance Review:

Sales for the three-month period ending March 31, 2022, stands at PKR 37.8 billion reflecting a growth of 16.8% compared to the same period of last year due to further relaxation of COVID-19 related restrictions and normalization of economic activities coupled with portfolio and pricing management. Operating profit for the period has improved due to favorable product mix, tighter control on fixed costs and better absorption of overheads.

The financial performance for the three months period is summarized below:

Jan - Mar 2022 PKR Million	Jan - Mar 2021 PKR Million	Change
Sales	37,781	32,334	+16.8%
Gross Profit	12,665	9,977	+26.9%
% of sales	33.5%	30.9%
Operating Profit	7,499	5,137	+46.0%
% of sales	19.8%	15.9%
Net Profit after tax	4,452	3,209	+38.7%
% of sales	11.8%	9.9%
Earnings per share	98.18	70.8	+38.7%

Future Outlook:

While the economy is showing signs of recovery and the risks from the pandemic is gradually waning, a continuous rise in commodity and energy prices have resulted in a significant increase in input costs. The situation has been further aggravated by the recent devaluation of the currency. The management of the company is fully cognizant of the situation and taking all necessary measures to manage these challenges and will continue to delight consumers with quality products and remains cautiously optimistic about the future.

For and on behalf of the Board of Directors

Samer Chedid

Chief Executive Officer