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Nestlé Lanka records strong growth amid economic challenges

04 Mar 2013 - {{hitsCtrl.values.hits}}

Full year net profit at Rs.2.9bn; quarter profits at Rs.949mn Recorded highest annual intake of local fresh milk, bringing the company’s total contribution to the rural economy to Rs.4 billion in 2012 Sri Lanka’s Nutrition, Health and Wellness company, Nestlé Lanka PLC, posted a revenue of Rs.7.2 billion for the last quarter of the year. Impacted by volatility in the currency and tough market conditions in 2012, the company delivered revenue of Rs. 28.6 billion and growth of 11.7% for the full year ending 31 December 2012.

Net profit for the full year at Rs.2.9 billion grew in line with revenue growth and also benefited from tax concessions on investments in fixed assets. The December quarter net profit stood at Rs.949.8 million against Rs.605.6 million the same period of the corresponding year.

“Volatile market conditions, currency depreciation and a significant increase in fuel, energy and input costs posed massive challenges for Nestlé Lanka in 2012. However we’re pleased that we were able to deliver a double digit growth under difficult circumstances. We invested responsibly and sustainably and, with creativity and innovation, laid the foundation for future growth. Despite the many challenges we foresee, we remain cautiously optimistic for 2013” said Ganesan Ampalavanar, Managing Director for Nestlé Lanka PLC.

Continuing its ongoing investments in its manufacturing facility in Kurunegala, Nestlé Lanka has invested over Rs.3 billion in the last two years.

The company marked a significant milestone when it recorded its highest annual procurement of local fresh milk in 2012; evidencing a growth of over 20% from the previous year. This, together with its procurement of other raw materials including coconut, marks the company’s highest annual contribution to the rural economy; paying out Rs. 4 billion in 2012 to more than 23,000 local farming families.

The ‘Good Food, Good Life’ company continued to add to its new product portfolio for 2012 in Q4 with Lactogrow - a unique growing-up milk formula fortified with probiotics to stimulate a healthy gut flora, tummy comfort, visual and growth development. Other innovations for the year were Maggi Ricey noodles, the Maggi Devilled noodles range, Nescafé Ice coffee ready-to-drink and the relaunch of Kit Kat. 2012 also saw the company expand its communications offering to the digital platform, launching its corporate website www.nestle.lk and its first Facebook page, Kit Kat Sri Lanka.

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Nestlé Lanka records strong growth amid economic challenges

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