Nestlé Lanka net up 98% to Rs.914mn amid favourable exchange rate

Nestlé Lanka PLC, a unit of Swiss-based multinational, said its profit in the first quarter of 2013 (1Q13) rose 98 percent year-on-year (YoY) to Rs.914 million, mainly benefiting from the favourable exchange rate environment prevailed in the country.

The revenue during the quarter under consideration rose 6.71 percent YoY to Rs.7.74 billion, while the cost of sales rising at a slower rate of 3.31 percent YoY to Rs.5 billion.

The firm has been able to reduce its other operating expenses drastically to Rs.4.8 million from Rs.239 million in the corresponding quarter of the previous year. The financial expenses fell 74 percent YoY to Rs.14 million.

“2013 market conditions continue to be challenging but our people have persevered in delivering consistent, good results. Our product innovations continue to be relevant to local consumer needs and I’m proud to say that our ‘Creating Shared Value’ strategy creates joint benefit for Nestlé and society at every stage of our value chain.

We continue to strive to make a difference to the lives of all our stakeholders with sustainable, responsible operations and safe food and beverages of the highest quality. Despite the many challenges, we remain cautiously optimistic,” Nestlé Lanka Managing Director Ganesan Ampalavanar said.

The company developed a new product innovation with the launch of Shaktigen and Nanogrow in the first quarter and its instant noodle brand Maggi was voted Food Brand of the Year and Youth Brand of the Year at SLIM Nielsen People’s Awards 2013.

Nestlé has also been recently awarded Swarnadeepa Award 2012 for contribution to Sri Lanka’s agricultural sector.