Nestlé continues momentum in Q1

To Press Releases listMay 6, 2016

 

  • Sales of LKR 9.8 billion with 9.1% growth
  • Opens new milk chilling centre in Northern region to help develop dairy farming
  • Focus on innovation and renovation, in line with Nutrition, Health and Wellness agenda
  • Commemorates 150 years of global presence and 110 years in Sri Lanka

Shivani Hegde, Nestlé Lanka Managing Director: “We kicked off 2016 with passion and determination to win in the marketplace. I am pleased that we have continued the momentum of 2015 and delivered good first quarter results despite difficult market conditions. We are focusing on product innovation and renovation and on strengthening our capabilities to delight our consumers, enhance the lives of the local community and deliver results for our shareholders.”

Financial results

Nestlé continued its momentum from 2015, delivering LKR 9.8 billion in sales and a growth of 9.1% for the first quarter ending 31 March 2016.

The company also posted a profit of LKR 1.3 billion for the first quarter, recording a profit growth of 10.1% through portfolio mix and cost optimization across the value chain.

Business review

In keeping with its ambition to be the trusted leader in Nutrition, Health and Wellness, the ‘Good Food, Good Life’ company renovated its popular dairy product, Nespray Everyday, fortifying it with iron and other micronutrients to address deficiencies in local diets. It also launched a Nespray Nutri-Up Ready-To-Drink junior pack, priced at only Rs.30, to provide consumers with affordable nutrition. Nespray Nutri-Up is fortified with vitamins A and D and made with the goodness of local fresh milk, collected from close to 20,000 Sri Lankan dairy farmers.

During the quarter, Maggi received recognition as the ‘Food Brand of the Year’, reaffirming consumers’ love for the brand. The company has also enhanced its Maggi Chicken and Maggi Curry noodles with the goodness of popular home ingredients typically found in Sri Lankan kitchens, like vegetables and spices such as turmeric, nutmeg, coriander, cumin and cardamom.

Milo, which has a strong association with school level sports and encourages children to lead a healthy and active lifestyle, launched a campaign to create awareness among parents and kids about the importance of breakfast.

The company’s ‘Out-of-Home’ food and beverage solutions arm, Nestlé Professional, introduced Sri Lanka’s first ever proprietary cool beverage dispenser made with advanced smart technology, Nestlé Coolpro. The machine provides a trendy refreshing beverage, Nestlé Sjora, with a delicious flavour fusion combining mango, peach and milk.

In line with its plans to develop its milk procurement network in the North and support the rural economy, Nestlé has opened a new milk chilling centre in the North-Eastern town of Vaddakkachchi.