Nestlé Lanka enjoys growth despite challenging business environment

Wednesday, 6 November 2013 00:00 - - {{hitsCtrl.values.hits}}

Nestlé Lanka PLC recorded a growth of 8.2% for the nine months ending 30 September 2013, posting revenue of Rs. 23.1 billion and a profit of Rs. 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.