Nestle Lanka PLC, one of the country’s biggest and most profitable conglomerates, has faced a challenging 2017 but by utilizing enhanced cost saving measures and focusing on driving efficiencies across the value chain to partly mitigate the impact of weather-related consumer demand decline for its products, unprecedented increase in raw material prices and increased VAT, its chairman, Mr. Suresh Narayanan, said in the company’s recently released annual report.
Although there was a 3.1% increase in revenue to Rs. 37.6 billion from Rs. 36.46 billion a year earlier, in the year ended Dec. 31, 2017, profit after tax declined to Rs. 3.63 billion from Rs. 4.4 billion in the previous year.
Net assets per share declined to Rs. 89.58 from Rs. 102.05, earnings per share were down to Rs. 67.64 from Rs. 81.87 and dividend per share to Rs. 50 from the previous year’s Rs. 80.
"2017 proved to be another very challenging year," Ms. Shivani Hegde reported, "as we managed sluggish consumer demand and rising cost pressures. I am proud to note however that the dedication and commitment of people and business partners helped us to mitigate the significant external challenges we faced in the year."
Noting that Nestle continued to believe in the long-term prospects of the Sri Lanka market and had initiated a five billion rupee investment in early 2017 to expand production capacity for dairy and coconut based products, she said.
"This investment will be funded through a judicious combination of internal accruals and borrowings," Hegde said.
The year had seen the "renovation and innovation" of the Nestle product portfolio. They procured fresh milk supplies from nearly 20,000 dairy farmers. Their popular Maggi chicken noodles had been renovated include eight popular Lankan spices.
"I am confident that our hard work in 2017 will help us further progress this year and strengthen our ability to capture sizable opportunities in 2018," she concluded.
Nestle has introduce a range of three sauces – tomato, chilli and oyster – under the Maggi brand and a reduced sugar Nescafe premix addressing current consumer needs for healthier beverage options. Similarly their spicy Maggi ‘hot’ noodles have been reformulated with reduced salt and fat while maintaining taste.
Nestle SA with 90.82% of the company is the dominant shareholder with all other nearly 5,300 shareholders on the register owning less than 1%. The Nestle share traded at a high of Rs. 2,310 and a low of Rs. 1,600 during the year closing at Rs. 1,626.
The directors of the company are Messrs. Suresh Narayanan, Ms. Shivani Hegde, S. Duggal, JK Singla, Gurucharan Grover, Mahen Dayananda and R., Seevaratnam.
Although there was a 3.1% increase in revenue to Rs. 37.6 billion from Rs. 36.46 billion a year earlier, in the year ended Dec. 31, 2017, profit after tax declined to Rs. 3.63 billion from Rs. 4.4 billion in the previous year.
Net assets per share declined to Rs. 89.58 from Rs. 102.05, earnings per share were down to Rs. 67.64 from Rs. 81.87 and dividend per share to Rs. 50 from the previous year’s Rs. 80.
"2017 proved to be another very challenging year," Ms. Shivani Hegde reported, "as we managed sluggish consumer demand and rising cost pressures. I am proud to note however that the dedication and commitment of people and business partners helped us to mitigate the significant external challenges we faced in the year."
Noting that Nestle continued to believe in the long-term prospects of the Sri Lanka market and had initiated a five billion rupee investment in early 2017 to expand production capacity for dairy and coconut based products, she said.
"This investment will be funded through a judicious combination of internal accruals and borrowings," Hegde said.
The year had seen the "renovation and innovation" of the Nestle product portfolio. They procured fresh milk supplies from nearly 20,000 dairy farmers. Their popular Maggi chicken noodles had been renovated include eight popular Lankan spices.
"I am confident that our hard work in 2017 will help us further progress this year and strengthen our ability to capture sizable opportunities in 2018," she concluded.
Nestle has introduce a range of three sauces – tomato, chilli and oyster – under the Maggi brand and a reduced sugar Nescafe premix addressing current consumer needs for healthier beverage options. Similarly their spicy Maggi ‘hot’ noodles have been reformulated with reduced salt and fat while maintaining taste.
Nestle SA with 90.82% of the company is the dominant shareholder with all other nearly 5,300 shareholders on the register owning less than 1%. The Nestle share traded at a high of Rs. 2,310 and a low of Rs. 1,600 during the year closing at Rs. 1,626.
The directors of the company are Messrs. Suresh Narayanan, Ms. Shivani Hegde, S. Duggal, JK Singla, Gurucharan Grover, Mahen Dayananda and R., Seevaratnam.
www.island.lk
No comments:
Post a Comment