April 28, 2026 (MLN): National Foods Limited (PSX: NATF) reported a spectacular 2.9x surge in its consolidated net profit for the nine months ended March 31, 2026, reaching a massive Rs5.34bn compared to Rs1.83bn in the corresponding period last year.

The company also declared cash dividend at Rs4 per share.

The primary driver of this exceptional profitability was robust top-line growth coupled with effective cost management.

NATF’s net sales posted a solid 17% year-on-year increase, rising to Rs38.92bn from Rs33.34bn.

Concurrently, the cost of sales was kept well under control, growing at a slower pace of 10% to reach Rs23.37bn.

Because revenue growth comfortably outpaced the rise in direct production costs, the company’s gross profit secured a strong 29% expansion, settling at Rs15.55bn up from Rs12.05bn in the prior year.

On the operational front, overheads grew at a moderate and proportionate pace.

 Selling and distribution costs rose by 10% to Rs6.87bn, while administrative expenses also increased by 10% to Rs2.84bn.

The sheer strength of the gross margin expansion easily absorbed these higher costs, driving the operating profit up by a formidable 83% to Rs5.83bn.

Below the operating line, NATF experienced highly favorable financial dynamics.

Although other expenses nearly doubled, jumping 97% to Rs497.30m, this was completely overshadowed by a massive surge in "other income," which skyrocketed to Rs1.04bn from just Rs275.33m last year.

Furthermore, the company successfully slashed its finance costs by 30%, dropping them to Rs781.89m from a heavier Rs1.11bn burden in 9MFY25.

This powerful combination of surging operating profits, soaring secondary income, and reduced debt-servicing costs propelled the profit before final and income taxes up by an impressive 2.7x to Rs5.59bn.

The company also benefited from a 46% reduction in its minimum and final tax levies (dropping to Rs85.93m).

While the core income tax expense did increase by 74% to Rs166.39m, the phenomenal pre-tax gains allowed National Foods to securely close the nine-month period with its massive leap in final net profit, settling at Rs5.34bn.

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