Nestlé Lanka announces growth of 11% for Q3 2013 in a challenging business environment

To Press Releases listColombo, Sri Lanka,Nov 6, 2013


 • Total revenue of LKR 7.8 billion, with a growth of 10.8%, partially benefitting from a revenue growth of 31% in exports

 • Net profit of LKR 906 million, supported by efficient management of input costs 

• Dairy Development work in the North and East profiled as a best practice by the United Nations Global Compact (UNGC) in its "Responsible Business Advancing Peace" publication. 

Sri Lanka's leading Nutrition, Health and Wellness company, Nestlé Lanka PLC,  recorded a growth of 8.2% for the nine months ending 30 September 2013, posting a revenue of LKR 23.1 billion  and a profit of LKR 2.6 billion against a challenging market environment. 

The company posted a total revenue growth of 10.8% for the third quarter, partially benefitting from exports which recorded an increase of 31%. Net profit for the period grew in line with revenue growth while the company continued to increase investment in trade, marketing and other consumer communication activities. 

"Each quarter in 2013 has posed new challenges and maintaining a growth momentum has been difficult. It is with no small amount of pleasure therefore that I note that the Nestlé team continues to persevere and deliver respectable top line growth. We continue to uphold and better our efforts to enhance the quality of life for our consumers and other stakeholders with consistent good performance, responsible business operations and nutritionally superior food and beverages of the highest safety and quality" said Ganesan Ampalavanar, Managing Director for Nestlé Lanka PLC. 

Its rural development efforts in Sri Lanka was recognised by a UNGC (United Nations Global Compact) publication on "Responsible Business Advancing Peace", launched at the UNGC Leaders Summit in September, which featured a case study on Nestlé Lanka and its work in developing the dairy industry in the North and East regions as a best practice. 

Nestlé is Sri Lanka's largest private sector collector of fresh milk, procuring an average of almost 175,000 litres of milk a day from 18,000 Sri Lankan farmers. Nestlé manufactures some of its most popular products in Sri Lanka using local fresh milk, namely Nespray, Milkmaid,Milo and Shaktigen. ;The company works actively with local farmers to help them increase their productivity and has won many accolades in recognition of its immense contribution towards developing the local dairy industry.

The third quarter has also seen Nestlé continue to deepen its engagement with local consumers on the digital platform with two new facebook pages – Nestlé Milkmaid Sweet Delights and Nestum Sri Lanka. Its Milkmaid page in particular has currently has one of the highest levels of engagement for a Sri Lankan facebook page

Nestlé has also continued to empower school level sports in Sri Lanka for the 20th year by working together with the Ministry of Sports and sponsoring national events such as the Milo School Colours Awards, Milo President's Rugby Trophy and more. The company's aim is to instill an interest in sports among youth for reasons of health, wellness, discipline and leadership. By nurturing young talent, it has been able to contribute to raising the overall standards of sports at school level and empower the lives of hundreds of thousands of promising athletes every year.