Sri Lanka’s MILCO profits rebound to Rs274mn in 2016

ECONOMYNEXT – State-run Milco (Pvt) Ltd, a Sri Lankan state-run diary products firm, has made profits of 274 million rupees in 2016, after it barely made a profit of 4 million rupees in 2015, following an increase in farmgate milk prices.

Milco increased revenues to 8,964 million rupees in 2016 from 8,403 million rupees in 2015, helped by a price increase, a finance ministry report said.

Expenses jumped 14 percent to 8,399 million rupees from 7,365 million rupees a year earlier after a new administration mandated a farmgate price of milk.  In 2016, expenses rose 3.4 percent to 8,690 million rupees.

The firm collected 67 million litres of milk, up from 62 million a year earlier.

Milco has market leadership in yoghurt, butter and sterilized milk. Its brand ‘Highland’ has a 30 percent share of the milk product market and 8 percent of the powder market, the report said.

Milk processing plants in Digana and Polonnaruwa were refurbished in 2016 as part of a 33.8 million euro programme funded by Denmark. A third Ambewela plant is expected to complete refurbishment in 2017.

A new factory is being constructed to shift its plant in Narahenpita to the capital Colombo. Milco has around 15 acres of land at the location.

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