Several milk products, including infant formula, have undergone significant price hikes from manufacturers. As of February 20, 2023, the cost of a one-liter tetra milk box has risen from Rs. 230 to Rs. 250, with the price only being Rs. 220 in October 2022.
A spokesperson from Nestle Pakistan Ltd (NPL) has attributed the price increase to the current high inflationary environment and the declining value of the currency affecting all products. Other contributing factors mentioned include the rising costs of milk production, feed, gasoline, and packaging materials. Retailers and department stores may offer lower prices for branded milk products, but this will depend on their sales and stock levels.
A merchant reported that the company has raised the prices of Nido 1 Plus 900-gram and 375-gram packets to Rs. 1,780 and Rs. 770, respectively, from Rs. 1,360 and 640. The cost of Nido 3 Plus 800-gram and 375-gram packets has been increased to Rs. 1,610 and Rs. 780, up from Rs. 1,490 and 720. Lactogen I 200-gram and 400-gram packets now cost Rs. 1,450 and Rs. 990, compared to Rs. 460 and Rs. 860, respectively.
Lactogen 2 and 3 are now priced at Rs. 500, Rs. 990, and Rs. 1,970 for 200-gram, 400-gram, and 800-gram packets, respectively. The price of Nan 1 Optipro 400 grams has gone up to Rs. 2,050, while the 900-gram pack is now priced at Rs. 4,445.
Nido School Age 900-gram, 650-gram, and 390-gram packets are now priced at Rs. 1,470, Rs. 1,100, and Rs. 680, respectively, an increase from Rs. 1,300, Rs. 820, and Rs. 560. The price of the Milo 300-gram pack has also gone up from Rs. 550 to Rs. 670. Nido 1 and Nido 3 tins (1,800 g) now cost Rs. 5,900.
It’s worth noting that NPL’s sales increased by 20 percent to Rs. 121 billion between January and September 2022, compared to Rs. 100 billion during the same period the previous year. The business’ after-tax net profit also grew by 25 percent to Rs. 11.4 billion from Rs. 9 billion. Operating profit rose by 37 percent to Rs. 21.5 billion from Rs. 15.6 billion due to increased sales, a favorable product lineup, and more stringent control over fixed costs.