Nestle revenues up 7 % despite ‘tough market conditions’
View(s):Sri Lanka’s Nestle unit has revealed a 6.9 per cent growth, in company revenues, in its first-half 2013 financials, to Rs. 15.3 billion, despite claims of “tough market conditions”, according to a statement.
The statement also highlighted what Nestle called its “highest monthly procurement of fresh milk in history”, with the company sourcing 6.5 million litres from 18,000 farmers over the month of June 2013.
Quoted in its statement, the company’s Managing Director, Ganesan Ampalavanar, also opined: “2013 continues to be a trying year. However I’m pleased that we have been able to persevere and deliver a 7 per cent growth. We have also continued to contribute significantly to the local rural economy; I’m proud to announce that we recorded our highest ever monthly procurement of fresh milk from 18,000 local farmers in June. Notwithstanding the difficult market environment, we remain cautiously optimistic for the rest of the year and will continue to strive to strengthen our leading position in key categories”.
At the same time, it was also noted that the company recorded a revenue growth of 7.1 per cent during the second quarter of its 2013 financial year, while profits for the same period were flat as a consequence of “increased investment in trade, marketing and other consumer communication activities”.
Overall, for the first six month of its current financial year, to end-June 2013, the company signalled it had a “consolidated profit growth of 36 per cent”, with its Net Profit for the period being recorded at Rs. 1.7 billion, which was mainly attributed to a “favourable exchange rate and comparatively lower commodity prices”.
(JH)
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