Tue, 17 May 2022 Today's Paper

Higher costs drag down Nestlé Lanka June quarter profits

12 August 2016 12:03 am - 0     - {{hitsCtrl.values.hits}}

A A A

Nestlé Lanka PLC saw its net profit for the quarter ended June 30 (2Q16) slipping 8.4 percent year-on-year (yoy) to Rs.1.19 billion, impacted by higher costs, the interim financial accounts released to the Colombo bourse showed.


Accordingly, the earnings per share weakened to Rs.22.15 from Rs.24.18. 
Nestlé Lanka share fell Rs.220.90 or 9.58 percent at yesterday’s market close. 
“The company faced stiff cost challenges including adverse exchange rates, the impact of which was minimised through efficient cost optimisation across the value chain and strategic deployment of resources to key brands,“ a Nestlé Lanka statement said.


The topline of the company improved during the quarter as sales rose 5.5 percent yoy to Rs.9.24 billion with cost of sales increasing only a modest 2 percent yoy to Rs.5.73 billion, resulting in a gross profit of Rs.3.5 billion, up from Rs.3.4 billion yoy.


However, the growth in the topline was dented by higher marketing, selling and distribution expenses, which rose 16.5 percent yoy to Rs.1.42 billion. Administrative expenses also rose 7.5 percent yoy to Rs.545.2 million. 


This pushed down the operating profit of the company to Rs.1.55 billion in during the quarter under review from Rs.1.68 billion in the same period of the previous year. 
Meanwhile, the company’s net profit of the first six months (1H16) improved only a marginal 0.3 percent yoy to Rs.2.46 billion, due to the same reasons seen in the 2Q16, despite the profits at topline levels growing at over 10 percent yoy.

The revenue in the first six months rose an impressive 7.4 percent to Rs.19 billion. The earnings per share for the six months improved slightly to Rs.45.89 from Rs.45.74. 
““We have delivered steady results for the first six months of the year despite a very challenging business environment,” Nestlé Lanka Managing Director Shivani Hegde said.


The company said it introduced several new nutrition, health and wellness products during the six month period.
The company’s total assets as at June 30, 2016 stood at Rs.11.5 billion, against Rs.12.1 billion six months ago. Retained earnings stood at Rs.2.98 billion, down from Rs.3.94 billion. 
As at June 30, 2016, Nestlé S.A held 90.82 percent of the issued shares of the company.  Nestlé has been in operation in Sri Lanka for 110 years. 

 

 

Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

Sell your vehicle & house fast with hitad.lk only cost is Rs.400, Advertise in Hitad.lk for free to sell your mobile phone. Want to sell your Pet, Advertise for Free in hitad.lk Search for Houses in Sri Lanka and find the best place through Hitad.lk find your best tuition place. Find the best partner for you, visit hitad.lk Find anything at any time hitad.lk.

  Comments - 0

Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 

Sell your vehicle & house fast with hitad.lk only cost is Rs.400, Advertise in Hitad.lk for free to sell your mobile phone. Want to sell your Pet, Advertise for Free in hitad.lk Search for Houses in Sri Lanka and find the best place through Hitad.lk find your best tuition place. Find the best partner for you, visit hitad.lk Find anything at any time hitad.lk.


Add comment

Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Reply To:

Name - Reply Comment




Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 

Sell your vehicle & house fast with hitad.lk only cost is Rs.400, Advertise in Hitad.lk for free to sell your mobile phone. Want to sell your Pet, Advertise for Free in hitad.lk Search for Houses in Sri Lanka and find the best place through Hitad.lk find your best tuition place. Find the best partner for you, visit hitad.lk Find anything at any time hitad.lk.


The Three Universal Truths in Buddhism

Buddhism is a moral and philosophical system, which expounds a unique path of

After night of terror, activists accuse government of smokescreening

On May 9, 2022, several hours before former Prime Minister Mahinda Rajapaksa

RECOVERY OF STOLEN ASSETS – Part I

The “#gotagohome” campaign that started a few weeks back demanding the Pr

‘GotaGoGama’ rises through ashes after Monday’s nightmare

A half burned down tent standing on plastic pillars, heaps of rubble from the