Heavy challenges faced by currency depreciation and increase in fuel, energy and other costs
H1 Highlights:
- Revenue of LKR 14.5 billion, with a good revenue growth of 13.5% (YoY)
- Net profit of LKR 1,246 million marginally down by 1% (YoY), impacted by currency depreciation and increase in fuel and input costs.
- Steps up contribution to rural economy – 35% (YoY) increase in local fresh milk procurement
Nestlé Lanka PLC, Sri Lanka’s leading Nutrition, Health and Wellness Company, recorded a good revenue growth of 13.5% (YoY) for the six months ending 30 June 2012, posting a revenue of Rs. 14.5 billion against the background of a difficult market environment.
The Company announced a flat bottomline growth of -1% (YoY), with a net profit of LKR 1,246 million due to currency depreciation and the rise in fuel, energy and other costs which resulted in a significant increase of costs for its manufacturing operations.
“2012 continues to be a very trying year for us. Despite the many challenges we face, we are maintaining a solid revenue growth and strengthening our leading position in our key categories. However, external impacts on the bottomline are continuing to take its toll. Notwithstanding, Nestlé will continue its strong commitment to Sri Lanka and its people. We have continued to contribute significantly to the local rural economy and registered a 35% increase in the procurement of local fresh milk. We remain committed to ‘Creating Shared Value’ for our local communities even during this difficult time.” said Mr. Alois Hofbauer, Managing Director of Nestlé Lanka PLC. In 2011, the company’s overall contribution to the rural economy by way of fresh milk and coconut purchases was 3.6 billion, resulting in a 63% increase in fresh milk and coconut procurement from 2010.