Nestlé Lanka delivers good 2013 performance despite challenges

Wednesday, 26 February 2014 00:00 - - {{hitsCtrl.values.hits}}

Leading nutrition, health and wellness company, Nestlé Lanka PLC, posted revenue of Rs. 7.8 billion for Q4 with a growth of 8.2%. The company recorded revenue of Rs. 30.9 billion and a growth of 8.2% amidst a challenging environment for the full year ending 31 December 2013.

The company posted a profit of Rs. 698 million for Q4 supported by efficient management of input costs. For the year ending 31 December 2013, the company recorded a profit of Rs. 3.3 billion, an increase of 12.5% from the previous year. Nestlé continued to increase investment in trade and marketing activities. “The macro-environment in 2013 was one of soft growth; fraught with lowered consumer confidence, industry issues and economic ambiguity. Our response was to increase brand support, accelerate innovation, invest in our people, continue responsible business operations and provide consumers with nutritionally superior food and beverages of the highest safety and quality,” said Ganesan Ampalavanar, Managing Director of Nestlé Lanka PLC.

Revenue of Rs. 7.8 b for Q4, reaching a revenue of Rs. 30.9 b with a growth of 8.2% for year ending 31 Dec. 2013
Profit after tax of Rs. 698 m for Q4 and Rs. 3.3 b for year ending 31 Dec. 2013
Nestlé Healthy Kids Program officially incorporated into Government campaign
62 million litres of local fresh milk procured in 2013, marking company’s highest-ever local milk collection
Recognised as one of Sri Lanka’s top 25 corporates by Business Today
Nestlé Global Executive VP visits Sri Lanka, reaffirms commitment to country

“We have maintained a respectable revenue growth in a challenging environment and, together with efficiencies and structural cost savings, improved margins and sustained a strong cash flow,” he added. Q4 continued to see Nestlé active in the community and recognised for its positive economic and social contribution to the country. The Ministry of Education Services and Nestlé Lanka PLC announced the incorporation of the Nestlé Healthy Kids Program into the Government’s island wide ‘Poshanayai Suwadiviyai’ (Nutrition for a Healthy Life) nutrition awareness campaign. The Nestlé Healthy Kids Program material and modules on nutrition education and healthy living will now be available at over 7,500 secondary, public schools across the country. The company also procured 62 million litres of local fresh milk from 18,000 Sri Lankan farmers in 2013, marking the company’s highest-ever milk collection in Sri Lanka. The company uses Sri Lankan fresh milk for its popular dairy-based products Nespray, Milo and Milkmaid. The year-end saw the company recognised as one of Sri Lanka’s top corporate performers for the financial year 2012-2013 by Business Today, ranked at No. 13 amongst Sri Lanka’s top 25 leading corporates. Nestlé Worldwide Group Executive Vice-President Nandu Nandkishore reconfirmed Nestlé’s commitment to Sri Lanka in a visit to the island in December 2013. He reinforced the company’s desire to create shared value in Sri Lanka and its focus on uplifting nutritional standards via nutritious food and beverages of the highest quality. “We see great value in our emerging markets, including Sri Lanka, and we will continue to invest in its growth, our people and operations and deliver upon our promise of value at every juncture,” he added.