Nestlé reported a sales revenue of Rs. 9.4 billion and profit of Rs. 0.9 billion for the first quarter ending 31 March 2017.
The Company’s results were impacted by an increase in Value Added Tax, and sluggish consumer demand aggravated by the prevailing drought, reported to be the worst in forty years. The drought has significantly affected fresh coconut crop, leading to an unprecedented increase in coconut prices.
“Severe drought leading to depressed consumer demand, and a significant increase in raw material costs, has made the start of this year particularly challenging. With an increasingly challenging business environment, we have put the necessary measures in place to enhance efficiency and offer more value to our consumers ” said Shivani Hegde, Nestlé Lanka Managing Director.
Nestlé recently initiated an investment of over Rs. 4.5 billion in a new manufacturing facility, to expand production capacity for its popular dairy and coconut based products.
Nestlé is Sri Lanka’s largest private sector collector of fresh milk, and one of the world’s largest exporters of coconut milk powder.
Supporting the livelihood of thousands of local farmers and their families, its payment to farmers for procuring these raw materials exceeded Rs. 6 billion in 2016 alone.
The Company’s results were impacted by an increase in Value Added Tax, and sluggish consumer demand aggravated by the prevailing drought, reported to be the worst in forty years. The drought has significantly affected fresh coconut crop, leading to an unprecedented increase in coconut prices.
“Severe drought leading to depressed consumer demand, and a significant increase in raw material costs, has made the start of this year particularly challenging. With an increasingly challenging business environment, we have put the necessary measures in place to enhance efficiency and offer more value to our consumers ” said Shivani Hegde, Nestlé Lanka Managing Director.
Nestlé recently initiated an investment of over Rs. 4.5 billion in a new manufacturing facility, to expand production capacity for its popular dairy and coconut based products.
Nestlé is Sri Lanka’s largest private sector collector of fresh milk, and one of the world’s largest exporters of coconut milk powder.
Supporting the livelihood of thousands of local farmers and their families, its payment to farmers for procuring these raw materials exceeded Rs. 6 billion in 2016 alone.
www.dailynews.lk
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