Nestlé’s Sri Lanka unit June quarter net down 8-pct

ECONOMYNEXT – Nestlé Lanka, the Sri Lankan unit of the food multinational, said June 2016 quarter net profit fell 8 percent to Rs1.19 billion from a year ago.

Sales rose 5.6 percent to Rs9.2 billion during the period, according to interim accounts filed with the stock exchange.

Earnings per share for the June 2016 quarter were Rs22.15.

EPS for the six months to June 2016 were Rs45.89, with net profit stagnant at Rs2.5 billion, while sales grew 7.4 percent to Rs19 billion from the year before.

Nestlé Lanka said in a statement that it introduced several new nutrition, health and wellness products during the six-month period.

“We have delivered steady results for the first six months of the year despite a very challenging business environment, said Shivani Hegde, Managing Director of Nestlé Lanka.

“The company faced stiff cost challenges including adverse exchange rates, the impact of which was minimised through efficient cost optimisation across the value chain and strategic deployment of resources to key brands.”

A note to the accounts said Nestlé Lanka had considered the normal tax rate of 28 percent despite a 2016 budget proposal, reducing the rate to 17.5 percent as the new rate had not yet been legally enacted.
(COLOMBO, August 11, 2016)

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