Nestlee‚ Lanka delivers strong 14% revenue growth
Nestle‚ Lanka PLC, Sri Lanka’s leading Nutrition, Health and Wellness
Company, recorded a strong revenue growth of 14% (YoY) for the three
months ending 31 March 2012, posting a revenue of Rs. 7.3 billion and a
net profit of Rs. 462 million amidst a difficult market environment.
The Company stated that net profit for Q1 were down 25% (YoY) due to
the currency depreciation effected early on this year and the rise in
fuel and energy costs which resulted in a significant increase of costs
for its manufacturing operations. However Nestle‚ continued its
investment commitment to the country in Q1 despite trying economic
conditions with a new noodle manufacturing plant to increase output for
its popular MAGGI Noodles range in Sri Lanka and also a new UHT milk
plant to further expand the company’s capacity for its popular dairy
based beverages. These investments are part of the company’s LKR 10
billion investment plan for dairy development and manufacturing capacity
expansion in the Beverages, Culinary and other areas over the next few
years.
“2012 is turning out to be a testing year. We are operating in an
even more difficult environment than the year before and are facing
multiple challenges. While we have delivered a strong revenue growth,
various external elements have had a significant impact on our Q1 net
profit. However it is with pride that we note that we have been able to
uphold our commitment to ‘Creating Shared Value’ for Nestle‚ and our
local communities during this difficult time.
We still continue with our investment commitments to Sri Lanka and
have even increased our local milk procurement to support our local
dairy farmers as best we can” said Alois Hofbauer, Managing Director of
Nestle‚ Lanka PLC. He added that Nestle‚ had increased its local fresh
milk collection by 48% (YoY) during the first quarter (January to March
2012).
Nestle‚ has continued to be recognised by the local business
community and consumers in Q1 for its world renowned products and
manufacturing operations. Its premium NESCAF brand clinched the Peoples
choice award for ‘Hot Beverage Brand of the Year’ at the SLIM-Nielsen
Peoples Awards 2012 and its state-of-the-art manufacturing facility in
Kurunegala won bronze at the National Cleaner Production Awards for
environmentally friendly operations.
Q1 also saw the company enhance its popular MAGGI noodles range in
Sri Lanka by launching a new range of instant noodle products for the
youth of this country - the ‘hot and spicy’ MAGGI Devilled noodles -
with new indigenous flavours to cater to changing consumer needs.
|