Despite having incurred a sizeable increase in distribution and selling cost on common size grounds and having spent over Rs 14 billion for capacity expansions in 2012, Nestle’s top line growth failed to rise accordingly. If it weren’t for a significant improvement in gross profit margins, Nestlé’s bottom line could have been lot thinner.
Having stayed in the green for the first half of FY13, the current account has firmly been pushed in the red, with deficit crossing the billion dollar mark. The State Bank of Pakistan (SBP) released the BoP statistics, showing a sharp surge in current account deficit in March. The current account deficit of $513 million in March alone equalled the CA deficit recorded in the first 8MFY13.
Even the largest multinational pharmaceutical company in Pakistan is facing a constrained growth environment. The turbulence brought by the devolution of ministry of health, high inflation, depreciating currency and a capped pricing policy remain significant challenges for GlaxoSmithKline (GSK).
Foreign private sector invested $820.7 million in Pakistan in the nine months ending March 2013. That’s a decent jump of 60 percent over the same period of last year. The devil, however, lies in the details.