NestlÃ© Sri Lanka profits in March fall on higher interest costs
Thursday May 9, 2019 11:04
ECONOMYNEXT- Sri Lanka’s Nestlé unit profits for the March quarter fell 39.3 percent to 572.9 million rupees from a year earlier due to higher interest costs, the firm said.
Nestlé’s interim financials showed that earnings per share were 10.66 rupees, while the firm was last trading at 1,590 rupees a share at the Colombo Stock Exchange.
Revenue for the March quarter fell 7.7 percent from a year earlier to 8.9 billion rupees, while cost of sales fell 3.5 percent to 6 billion rupees, leading to gross profits which fell 15.2 percent to 2.9 billion rupees.
Net finance expenses grew 819.9 percent to 92.9 million rupees.
"Net financial expenses have increased mainly due to the borrowings for significant capital expenditure and cessation of capitalization of borrowing costs on completion of key project," Nestlé said.
The firm recently completed a 5 billion rupee coconut milk processing plant, which is the single largest investment it has made in Sri Lanka.
Nestlé has 2 billion rupees in long-term borrowings in March, unchanged from the start of the financial year in January, while short-term borrowings grew to 1.9 billion rupees from 1.5 billion rupees.
The firm’s total assets were stable at 17.8 billion rupees.
Parent Nestlé S. A. owns 90.82 percent of the shares in its local unit. (Colombo/May09/2019-SB)