Nestlé Lanka PLC

Annual Report 2021

My Nestlé, My Sri Lanka

My Nestlé, My Sri Lanka

For over 115 years, we have been doing good by delivering on our promise of 'Good food, Good life' and becoming an integral part of Sri Lankan lives. Through our diverse food and beverage portfolio, which caters to our consumers from early childhood to old age, we have helped 'unlock the power of food to enhance quality of life for everyone, today and for generations to come'. We are here together for good - for our families, our communities, and our planet, and this report is a reaffirmation of our commitment.

Contents

  • 6 Our Performance

  • 8 Innovations and Renovations

  • 9 Awards and Accolades

  • 10 Chairman's Message

  • 12 Managing Director's Review

  • 19 Board of Directors

  • 20 Board of Directors' Profiles

  • 22 Management Team

  • 30 Corporate Governance

  • 32 Corporate Governance Reporting

  • 35 Report of the Audit Committee

  • 37 Report of the Remuneration Committee

  • 38 Report of the Related Party Transactions Review Committee

  • 40 Annual Report of the Directors on the Affairs of the Company

  • 45 Directors' Responsibility for Financial Reporting

  • 54 Company Highlights

  • 55 Independent Auditor's Report

  • 58 Statement of Profit or Loss and Other Comprehensive Income

  • 59 Statement of Financial Position

  • 60 Statement of Changes in Equity

  • 61 Statement of Cash Flows

  • 62 Notes to the Financial Statements

  • 102 Ten Year Summary

  • 103 Share Information

  • 105 Corporate Information

  • 106 Notice of Meeting

  • 107 Form of Proxy

  • 109 Attendance Form & Instructions

We are nourishing Sri Lanka by offering tastier and healthier products and inspiring Sri Lankans to live healthier and happier lives. We are committed to catering to the nutritional needs of our consumers across generations, from early childhood to old age through our diverse food and beverage portfolio. We continuously strive to reduce public health sensitive nutrients and add more positive ingredients like whole grains, fibre, fruits, vegetables, and spices to our products. We also fortify our products where relevant with essential micronutrients that are deficient in the local diet. Last year, we also accelerated our efforts to locally source as many ingredients as possible. In addition, we conduct several initiatives to educate, inspire and create awareness on healthy living, to help our consumers be healthier and happier.

We are uplifting Sri Lankan communities by supporting livelihoods of local farmers, empowering youth and fostering diversity and inclusion across our value chain. As one of Sri Lanka's largest collectors of fresh milk, we support the livelihoods of over 13,000 dairy farmers and help them improve their yield and quality through our Dairy Development Programme. Being one of the largest exporters of Coconut Milk Powder, we support over 8,000 local, medium and large-scale coconut farmers through the procurement of fresh coconuts.

In addition, we offer free hybrid coconut plantlets and technical assistance to encourage coconut cultivation among 4,000 rural farmers and home-growers through our Nestlé Coconut Plan. Further, we empower Sri Lanka's youth by enhancing employability and supporting them to reach their potential through initiatives conducted under the Nestlé Needs YOUth programme. We also have programmes in place to promote gender balance and the inclusion of diverse people in our workforce.

We are making Sri Lanka more sustainable by helping tackle plastic pollution, acting on climate change and caring for water. We have accelerated our journey towards net zero while striving to advance regenerative food systems at scale. Working from farm to table, we have actioned several initiatives to tackle plastic pollution by moving to recyclable or reusable packaging and helping to create a circular economy. Last year, we switched to paper straws for our Ready-to-Drink products and helped establish a collection infrastructure and recycling facility for aseptic beverage cartons in Sri Lanka. We also continue to work with government and private institutions to galvanize behavioural change towards caring for our planet. Further, we are proud to say that, while we increase our production capacity every year, we take every effort to continuously reduce the use of resources such as energy and water and the emission of harmful gases, by investing in the latest technologies and innovations.

A Force For Good

Guided by our company's purpose and values, we are proud to have been a consistent Force for Good for over 115 years, by enhancing the quality of life of every Sri Lankan we touch. Through good and trying times, our contribution towards a sustainable and resilient Sri Lanka has never wavered. We constantly aim to push the boundaries of what's possible with food and beverages and are committed to do good for everyone - our families, communities, and the planet. We do this by -

  • • Offering tastier and healthier products

  • • Inspiring people to live healthier lives

  • • Supporting livelihoods of local communities

  • • Enhancing youth employability

  • • Fostering diversity and inclusion

  • • Tackling plastic pollution

  • • Caring for water and acting on climate change

4

935 mn

servings of micronutrient enriched products to consumers

15,000+≈

people provided with free health checks and nutritional counselling through our Choose Wellness, Choose Nestlé programmes

Approximately

60,000

Sri Lankans inspired to live a healthier, happier and fitter life through the Nestlé Family Club

Rs. 2.4 BN

paid out to approximately 13,000 local dairy farmers

Rs. 6 BN

paid out to approximately 8,000 local coconut farmers

1,000

more homegrowers benefited through the fifth phase of the Nestlé Coconut Plan

26,000+≈

young people directly reached through our

Nestlé Needs YOUth programmeMaternity leave extended to

6 MONTHS

Saved energy by

16.9%٭

Saved water by

2.5%٭

Reduced greenhouse gas emissions by

1.6%‡

80%+≈

packaging by weight is recyclableSupported to set up a facility for recycling aseptic beverage cartons with processing and packaging solutions company Tetra Pak

٭6 2012-2021 per tonne of production

≈ 2020-2021

‡ 2021 per tonne of production

New reality is more important than ever, and we are proud to be a company whose values align with those of our consumers, with products and services that are helping to address society's greatest challenges.

Revenue

Rs. 45.42 bn

Contribution to Exchequer

Rs. 5.6 bn

Earnings per share

Rs. 99.19

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Nestlé Lanka plc published this content on 19 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 April 2022 06:13:02 UTC.