Nestle records Rs 3.6 b net profit | Page 2 | Sunday Observer

Nestle records Rs 3.6 b net profit

Nestlé delivered a revenue of Rs. 37.6 billion (up 3.1% over 2016) and a net profit of Rs. 3.6 billion for the full year ending December 31, 2017.

Revenue for the fourth quarter was Rs. 10 billion (up 15.6% over Q4 2016) with a net profit of Rs. 1.2 billion.

The severe drought and floods, resulting in weak consumer confidence and decline in consumer demand, adversely impacted results. Growth rates were further eroded by an increase in Value Added Tax, which coupled with unprecedented increase in coconut prices, had a negative impact on profit.

Enhanced cost saving measures and a focus on driving efficiencies across the value chain helped in partly mitigating these impacts.

The company’s contribution to the exchequer as taxes in 2017 was Rs. 6.5 billion.

Continuing to believe in the long term prospects of the Sri Lankan market, Nestlé initiated an investment of around Rs. 5 billion in early 2017, to expand production capacity for dairy and coconut based products, which will be funded through a judicious combination of internal accruals and borrowings.

The Board approved an interim dividend of Rs. 25 per share on 22 February 2018 and proposed a final dividend of Rs. 25 per share for the full year, to be approved at the company’s Annual General Meeting on 4 May 2018.

Nestlé Lanka Managing Director Shivani Hegde said, “Nestlé has a strong foundation in Sri Lanka and a solid track record. The FMCG market has been adversely impacted this year due to sluggish consumer demand and rising cost pressures.

“The dedication and commitment of our people and business partners allowed us to address the significant challenges we faced in the year. I am immensely proud to note that the company, our brands and our people continued to be recognised for their performance and significant contributions. In line with today’s environment, we are intensifying our focus on innovation, operational efficiency and on developing our people’s skills.

“We enter 2018 with the same passion and determination, to continue to deliver on our purpose of enhancing quality of life and contributing to a healthier future,” he said.