Nestle Lanka : Nestlé Lanka delivers revenue of Rs. 36.5 billion with growth of 5.1% in 2016 amidst tough market conditions

To Press Releases listFeb 22, 2017

• Revenue of Rs. 36.5 billion with growth of 5.1% in full year 2016
• Focuses on innovation and renovation of portfolio, to offer Nutrition, Health and Wellness
• Launches series of community initiatives to celebrate 110 years in Sri Lanka
• Recognised as 'Most Respected Food and Beverage Company' (LMD's Most Respected Entities in Sri Lanka 2016)
• Ranked No. 9 in Sri Lanka's Top 30 Corporate Performers for 2015-2016 (Business Today TOP 30)
• 'Nestlé' is No. 7 amongst the country's Top 10 Most Valuable Brands (LMD's Brands Annual 2016)
• Awarded 'Best Multinational Company Engaged in Exports' for contribution towards development of Sri Lanka's exports
• Supports rural economy with over Rs 6 billion, for procurement of fresh milk and coconuts

Nestlé Lanka's Managing Director, Shivani Hegde stated: '2016 has witnessed a very challenging business environment. Our steady progress and the external recognitions are a testament to the trust consumers place in our products, and the skills of our people. We continue to invest in strengthening our brands, training our people, increasing manufacturing capacities, and enhancing the quality of life of the people of Sri Lanka.'

Financial results

Sales grew by 5.1% to Rs. 36.5 billion, with profit after tax of Rs 4.4 billion for the full year ending 31 December 2016. Tax increases resulted in some erosion in the Q4 2016 revenue of Rs. 8.6 billion.

The impact of cost increases and taxes was partially mitigated through focus on driving efficiencies across the value chain.

The Board approved an interim dividend of Rs 40 per share on 21st February 2017 and has proposed a final dividend of Rs 40 per share for the full year, to be approved at the company's Annual General Meeting on 5th May 2017.

Business review

The company's flagship brands strengthened their position in the market, focusing on innovation and renovation to meet changing consumer needs and nutrition requirements. Identifying the deficiency of certain nutrients in the local diets, it delivered over 500 million serves of micronutrient fortified foods and beverages in 2016.

Nespray Everyday, which offers the goodness of locally sourced Sri Lankan milk, was fortified with iron and other micronutrients. The company also launched Nespray FortiGrow, a Hi -Calcium milk drink, designed to support the nutritional needs of school-aged children.

Maggi Chicken and Maggi Curry noodles were enhanced with the goodness of popular home ingredients like vegetables and spices. Maggi also introduced Maggi Daiya Chicken noodles - a spicier variant fortified with calcium. Maggi was once again voted 'Food Brand of the Year' for the fourth consecutive year at the SLIM Nielson People's Awards.

Milo strengthened its 'Mom, Me and My Milo' campaign that encourages children to lead an active lifestyle and start the day with a healthy breakfast. Nestomalt was recognized as one of Sri Lanka's Top 10 FMCG brands in the Kantar Worldpanel Brand Footprint study 2016, from a total of 400 brands in the country. It's popular coffee brand Nescafé, introduced a new Nescafé 3 in 1 coffee mix, offering more coffee and a richer aroma for an authentic coffee experience.

Nestlé Professional continued to provide food and beverage solutions to the 'Out-of-Home' sector, and introduced the Nestlé CoolPro beverage system to deliver a refreshing beverage, Nestlé Sjora, a delicious flavour fusion of mango, peach and milk.

110 years in Sri Lanka and 150 years of global presence

zIn celebration of 110 years of operations in Sri Lanka and 150 years globally, the company launched a number of initiatives to enhance the quality of life of the people, through development of rural communities and contributing towards a healthier generation of Sri Lankans, including:

• 'Kiri Govi Diriya' program, in support of Sri Lanka's vision of achieving self-sufficiency in dairy, where 3,000 dairy farmers benefitted from training on modern technologies, to produce more milk of higher quality
• 'Coconut Development Program' where 10,000 coconut plantlets were donated to 2,000 farming families and 2 model coconut farms were set-up to showcase best practices
• 'Wellness Pledge' where consumers in 150 towns across the island including His Excellency President Maithripala Sirisena pledged to live an active lifestyle, and the 'Choose Wellness, Choose Nestlé' campaign, to educate over 15,000 consumers on a healthy diet and lifestyle
• The company scaled up its Nestlé Healthy Kids Program and 152,000 school children were educated on nutrition and the importance of physical activity

Continuing it's efforts to enhance the nutritional knowledge of Government Midwives, the Nestlé Nutrition Institute was recognised for the second year by the Ministry of Health. Nestlé also supported the rural economy with a contribution of over Rs 6 billion to the local dairy and coconut industries, for procurement of fresh milk and coconuts from 27,000 farming families.