Transmission of Quarterly Report for the Period Ended 30 September 2025

‌Condensed interim financial information for the nine months ended September 30, 2025

Good Food, Good Life

‌Docusign Envelope ID: 6393A197-3479-4358-85F3-818B4B114609

NESTLÉ PAKISTAN LIMITED DIRECTORS' REVIEW

The Directors of Nestlé Pakistan Limited (the "Company") are pleased to submit the director's report, along with the condensed interim financial statements of the Company for the nine months period ended September 30, 2025.

Business Performance Review:

On the back of a strong sales growth of 19.2% in the 3rd quarter of 2025 vs. 3rd quarter of 2024, the sales for the nine-month period ended September 30, 2025 amounted to PKR 150.8 billion, reflecting a growth of 1.1% versus the corresponding period of the prior year. This signals a gradual improvement in demand that was negatively impacted by the imposition of an 18% sales tax effective from 1st of July 2024, on a majority of the products portfolio of the Company. An improved topline, together with a favorable product mix, reduced energy costs and value chain optimization initiatives led to an improvement in gross and operating profit margins as a percentage of sales. Further, lower levels of borrowing helped to reduce the Company's financing costs which helped to improve net profit.

The financial performance of the Company for the nine-month period ended September 30, 2025 is summarized below:

Future Outlook:

Amid low inflation and a relatively stable macroeconomic outlook, management maintains a cautiously optimistic outlook on business performance, while focusing on value chain optimization opportunities and continuing to delight our consumers with high-quality products.

Syed Yawar Ali

For and on behalf of the Board of Directors

Joselito Jr Avancena

Chief Executive Officer

Lahore

Dated: October 16, 2025

Director

‌Docusign Envelope ID: 97565CBC-44F3-476D-B49A-223A5057B4FB

Nestlé Pakistan Limited

Condensed Interim Statement of Financial Position

As at September 30, 2025 (un-audited)

s '

The annexed notes 1 to 12 form an integral part of these financial statements.

Condensed Interim Statement of Profit or Loss

For the nine month period ended September 30, 2025 (un-audited)

Nine-month period ended Three-month period ended Sep 30, 2025 Sep 30, 2024 Sep 30, 2025 Sep 30, 2024

--- (Pak Rupees in '000) --- --- (Pak Rupees in '000) ---

MAQSOOD AHMAD ANJUM

Chief Financial Officer

JOSELITO JR AVANCENA

Chief Executive Officer

SYED YAWAR ALI

Chairman / Director

Condensed Interim Statement of Comprehensive Income

For the nine month period ended September 30, 2025 (un-audited)

Nine-month period ended Three-month period ended Sep 30, 2025 Sep 30, 2024 Sep 30, 2025 Sep 30, 2024

--- (Pak Rupees in '000) --- --- (Pak Rupees in '000) ---

Profit after taxation 14,095,097 12,285,832 3,670,217 2,327,303 Other comprehensive income

Items that may be reclassified subsequently to profit or loss (net of tax)

Items that will not be reclassified subsequently to profit or loss (net of tax)

− − − −

− − − −

Other comprehensive income for the period - - - -

Total comprehensive income for the period 14,095,097 12,285,832 3,670,217 2,327,303

The annexed notes 1 to 12 form an integral part of these financial statements.

MAQSOOD AHMAD ANJUM

Chief Financial Officer

JOSELITO JR AVANCENA

Chief Executive Officer

SYED YAWAR ALI

Chairman / Director

Nestlé Pakistan Limited

Condensed Interim Statement of Changes in Equity

For the nine month period ended September 30, 2025 (un-audited)

Share capital

Capital reserves

Revenue reserves

Share General Accumulated

premium reserve profits Total

------------------------------------------------ (Rupees in '000) -----------------------------------------------

Balance as at January 01, 2024 (audited) 453,496 249,527 280,000 9,605,034 10,588,057

Total comprehensive income for the

nine months ended September 30, 2024

Profit after taxation

Other comprehensive income

Final dividend for the year ended December 31, 2023 (Rs. 19 per share)

Interim dividend for the six-month period ended

June 30, 2024 (Rs. 121 per share) - - - (5,033,804) (5,033,804)

Balance as at September 30, 2024 (un-audited) 453,496 249,527 280,000 15,995,420 16,978,443

Total comprehensive income for the year ended December 31, 2024

Profit after taxation

Other comprehensive income

Transaction with owners directly recognized in equity

- - - 2,738,335 2,738,335

Interim dividend for the nine-month period ended

The annexed notes 1 to 12 form an integral part of these financial statements.

MAQSOOD AHMAD ANJUM

Chief Financial Officer

JOSELITO JR AVANCENA

Chief Executive Officer

SYED YAWAR ALI

Chairman / Director

For the nine month period ended September 30, 2025 (un-audited)

Cash flow from operating activities

Sep 30, 2025 Sep 30, 2024

--- (Pak Rupees in '000) ---

For the nine month period ended September 30, 2025 (un-audited)

Note

Sep 30, 2025 Sep 30, 2024

--- (Pak Rupees in '000) ---

MAQSOOD AHMAD ANJUM

Chief Financial Officer

JOSELITO JR AVANCENA

Chief Executive Officer

SYED YAWAR ALI

Chairman / Director

For the nine month period ended September 30, 2025 (un-audited)

1. Legal status and nature of business

   Nestlé Pakistan Limited ("the Company") is a public limited company incorporated in Pakistan - under the repealed Companies Ordinance, 1984 (now Companies Act, 2017) - and its shares are quoted on Pakistan Stock Exchange. The Company is a subsidiary of Société des Produits Nestlé S.A. (SPN), the Holding Company, which in turn is a wholly owned subsidiary of Nestlé S.A., the Ultimate Parent Company, incorporated in Switzerland.

   The Company is principally engaged in manufacturing, processing and sale of dairy, nutrition, beverages and food products including imported products. Registered office (which is also the Head Office) of the Company is situated at Packages Mall, Shahrah-e-Roomi, PO Amer Sidhu, Lahore, previously it was situated at Babar Ali Foundation Building, 308 Upper Mall, Lahore.

   The geographical locations and addresses of the Company's manufacturing facilities are as under:

   Manufacturing Facilities Address

   Sheikhupura factory 29-km Lahore - Sheikhupura Road, Sheikhupura, Pakistan

   Kabirwala factory Port Qasim factory Islamabad factory

2. Basis of preparation

   10-km, Khanewal Road, Kabirwala, District Khanewal, Pakistan

   Plot No. A23, North Western Industrial Area, Port Qasim Karachi, Pakistan Plot No. 32 Street No 3 Sector I-10/3 Industrial Area Islamabad, Pakistan.

   1. Statement of compliance

      These condensed interim financial statements comprise the condensed interim statement of financial position of the Company as at September 30, 2025 and the related condensed interim statement of profit or loss, the condensed interim statement of comprehensive income, the condensed interim statement of changes in equity and the condensed interim statement of cash flows together with the notes forming part thereof.

      These condensed interim financial statements are un-audited and are being submitted to the shareholders as required under section 237 of the Companies Act, 2017 and the Listing Regulations of Pakistan Stock Exchange Limited.

      These condensed interim financial statements of the Company have been prepared in accordance with the accounting and reporting standards as applicable in Pakistan for interim financial reporting. The accounting and reporting standards as applicable in Pakistan for interim financial reporting comprise of:

      • International Accounting Standard (IAS) 34, Interim Financial Reporting, issued by the International Accounting Standards Board (IASB) and Islamic Financial Accounting Standards ("IFAS") issued by the Institute of Chartered Accountants of Pakistan as notified under the Companies Act 2017; and

      • Provisions of and directives issued under Companies Act, 2017.

      Where the provisions of and directives issued under the Companies Act, 2017 differ with the requirements of IAS 34 and IFAS, the provisions of and directives issued under the Companies Act, 2017 have been followed.

      These condensed interim financial statements do not include all the information required for annual financial statements and should be read in conjunction with the annual audited financial statements as at and for the year ended December 31, 2024. Comparative condensed interim statement of financial position is stated from annual audited financial statements as of December 31, 2024, whereas comparatives for condensed interim statement of profit or loss, condensed interim statement of comprehensive income, condensed interim statement of changes in equity and condensed interim statement of cash flows and related notes are extracted from condensed interim financial statements of the Company for the nine-month period ended September 30, 2024.

      Nestlé Pakistan Limited Notes to the Condensed Interim Financial Statements

      For the nine month period ended September 30, 2025 (un-audited)

   2. Judgements and estimates

      The preparation of financial statements in conformity with approved accounting standards requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions and judgments are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the result of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. In preparing these condensed interim financial statements, the significant judgements made by the management in applying accounting policies and key sources of estimation were the same as those that were applied to and disclosed in the financial statements as at and for the year ended December 31, 2024.

3. Summary of significant accounting policies

   1. The accounting policies and the methods of computation adopted in the preparation of these condensed interim financial statements are the same as those applied in the preparation of the financial statements for the year ended December 31, 2024, except as mentioned in note 3.2.

   2. The Company adopted following new amendments to the approved accounting standards which became effective during the period, however these are not considered to be relevant or have any significant effect on the financial statements:

      New Standards, Interpretations and Amendments

      IAS 21

      Lack of exchangeability - (Amendments)

      The Company expects that above mentioned standards will not have any material impact on the Company's condensed interim financial statements in the period of initial application.

4. Contingencies and commitments

   1. There has been no significant change in the status of the contingencies reported in the annual audited financial statements for the year ended December 31, 2024.

(Un-audited) (Audited)

Sep 30, 2025 Dec 31, 2024

----- (Rupees in '000) -----

For the nine month period ended September 30, 2025 (un-audited)

(Un-audited) (Audited)

Sep 30, 2025 Dec 31, 2024

----- (Rupees in '000) -----

arrangements - secured (121,703) (660,550)

8,863,045 1,661,851

1. Transactions with related parties

   The related parties comprise of holding company, associated companies, other related companies, key management personnel and employees retirement benefit funds. The Company in the normal course of business carries out transactions with various related parties. Significant transactions with related parties are as follows:

   (Un-audited) (Un-audited)

   Sep 30, 2025 Sep 30, 2024

   ----- (Rupees in '000) -----

   Associated companies

   License fee	5,210,396	5,251,458
   Dividends paid	9,352,010	4,805,379
   Interest on Long-term loan	83,712	98,992
   Purchase of goods, services, assets and rent expense	14,878,731	14,356,666
   Sale of goods	558,228	322,748
   Insurance premium	374,069	325,993
   Insurance claims	44,609	29,695
   Donations	-	1,000
   Other related parties
   Contribution paid to staff retirement benefits plan	1,407,572	1,327,156
   Remuneration to key management personnel	6,982,948	6,686,704

   All transactions with related parties have been carried out on mutually agreed terms and conditions.

   Nestlé Pakistan Limited Notes to the Condensed Interim Financial Statements

   For the nine month period ended September 30, 2025 (un-audited)

2. Segment reporting

   Segment information is presented in respect of the Company's business. The chief decision maker allocates resources and monitors performance based on business segments.

   Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.

   Segment capital expenditure is the total cost incurred during the period to acquire segment assets that are expected to be used for more than one year.

   The Company's operations comprise of the following main business segments and product categories:

   1. Dairy and nutrition products

      Milk based products

   2. Powdered and liquid beverages

      Juices, drinking water and powdered drinks

   3. Other products

   confectionery, cereals and other products

   1. Segment analysis for the nine-month period ended September 30, 2025 (un-audited)

      Dairy and Powdered

      nutrition and liquid Other

      products beverages products Total

      ------------------------- (Rupees in '000) ------------------------

      Revenue from contracts
      with customers	118,032,520		32,197,894		588,301		150,818,715
      Depreciation and
      amortization	2,513,008		1,102,152		27,802		3,642,962
      Operating profit before
      tax and unallocated expenses	23,833,830		3,092,113		99,121		27,025,064
      Unallocated corporate expenses: Finance cost							(452,780)
      Other operating expenses							(2,605,065)
      Other income							409,003
      Minimum tax differential							(116,486)
      Income tax							(10,164,639)
      Profit after taxation							14,095,097

      Nestlé Pakistan Limited Notes to the Condensed Interim Financial Statements

      For the nine month period ended September 30, 2025 (un-audited)

      Segment analysis for the nine-month period ended September 30, 2024 (un-audited)

      Dairy and nutrition products		Powdered and liquid beverages	Other products	Total
      ------------------------- (Rupees in '000) ------------------------
      	Revenue from contracts with customers 117,308,488 31,310,289		610,815		149,229,592
      	Depreciation and amortization 1,671,186 690,548		19,820		2,381,554
      	Operating profit before
      	tax and unallocated expenses 22,257,851 2,130,951		81,457		24,470,259
      	Unallocated corporate expenses: Finance cost				(2,283,868)
      	Other operating expenses				(1,754,657)
      	Other income				355,405
      	Final tax				(24,786)
      	Taxation				(8,476,521)
      	Profit after taxation				12,285,832
      	There is no inter segment revenue between operating segments.
      8.2	Reportable segment assets and liabilities
      	As at September 30, 2025 (un-audited) Dairy and Powdered and		Other
      	nutrition products liquid beverages		products		Total
      ------------------------- (Rupees in '000) ------------------------
      Segment assets		62,359,940	20,717,789	18,372	83,096,101
      Unallocated assets					9,579,264
      Total assets					92,675,365
      Segment liabilities		26,009,613	8,429,042	63,916	34,502,572
      Unallocated liabilities					58,172,793
      Total liabilities					92,675,365
      As at December 31, 2024 (audited)		Dairy and	Powdered and	Other

      nutrition products liquid beverages products Total

      ------------------------- (Rupees in '000) ------------------------

      Segment assets	59,512,110	20,384,963	163,161	80,060,234
      Unallocated assets				3,568,633
      Total assets				83,628,867
      Segment liabilities	24,469,811	8,468,878	108,695	33,047,384
      Unallocated liabilities				50,581,483
      Total liabilities				83,628,867

      Nestlé Pakistan Limited Notes to the Condensed Interim Financial Statements

      For the nine month period ended September 30, 2025 (un-audited)

      8.3 Geographical segments

      (Un-audited) (Un-audited)

      Sep 30, 2025 Sep 30, 2024

      ----- (Rupees in '000) -----

      Sales are made by the Company in the following countries:
      Pakistan	147,548,341		144,825,840
      Afghanistan	1,424,377		2,230,529
      United States of America	502,542		1,045,225
      Other countries	1,343,455		1,127,998
      	150,818,715		149,229,592

      The Company manages and operates manufacturing facilities and sales offices in Pakistan only.

3. Financial risk management

   The Company's financial risk management objective and policies are consistent with those disclosed in the audited financial statements of the Company for the year ended December 31, 2024.

   There is no change in the nature and corresponding hierarchies of fair valuation levels of financial instruments from those as disclosed in the audited financial statements of the Company for the year ended December 31, 2024.

4. General

   These condensed interim financial statements are presented in Pak Rupees which is the Company's functional and presentation currency. Figures have been rounded off to the nearest thousand of rupee.

5. Dividend

   The Board of Directors in their meeting held on October 16, 2025 has proposed an interim cash dividend for the nine month period ended September 30, 2025 of Rs. 78 per share (September 30, 2024: Rs. 25 per share), amounting to Rs. 3,537.27 million (September 30, 2024: Rs. 1,133.74 million). These condensed interim financial statements do not reflect this dividend.

6. Date of authorization for issue

These un-audited condensed interim financial statements were authorized for issue on October 16, 2025 by the Board of Directors.

MAQSOOD AHMAD ANJUM

Chief Financial Officer

JOSELITO JR AVANCENA

Chief Executive Officer

SYED YAWAR ALI

Chairman