Nestlé Lanka sees revenue rise in 2016 amidst tough conditions
View(s):While 2016 was a very challenging business environment, Nestle’s steady progress and the external recognitions are a testament to the trust consumers place in its products, and the skills of its people, says Nestlé Lanka’s Managing Director, Shivani Hegde.
In the company’s 2016 report, she said: “We continue to invest in strengthening our brands, training our people, increasing manufacturing capacities, and enhancing the quality of life of the people of Sri Lanka”.
The report said sales grew by 5.1 per centto Rs. 36.5 billion, with profit after tax at Rs 4.4 billion for the full year ending December 31, 2016. Tax increases resulted in some erosion in the Q4 2016 revenue of Rs. 8.6 billion.
The impact of cost increases and taxes was partially mitigated through focus on driving efficiencies across the value chain, it said.
The company’s flagship brands strengthened their position in the market, focusing on innovation and renovation to meet changing consumer needs and nutrition requirements. Identifying the deficiency of certain nutrients in the local diets, it delivered over 500 million serves of micronutrient fortified foods and beverages in 2016.
Nestle said that In celebration of 110 years of operations in Sri Lanka and 150 years globally, the company launched a number of initiatives to enhance the quality of life of the people, through development of rural communities and contributing towards a healthier generation of Sri Lankans, including:
• ‘Kiri Govi Diriya’ programme, in support of Sri Lanka’s vision of achieving self-sufficiency in dairy, where 3,000 dairy farmers benefitted from training on modern technologies, to produce more milk of higher quality
• ‘Coconut Development Programme’ where 10,000 coconut plantlets were donated to 2,000 farming families and 2 model coconut farms were set-up to showcase best practices
• ‘Wellness Pledge’ where consumers in 150 towns across the island including President Maithripala Sirisena pledged to live an active lifestyle, and the ‘Choose Wellness, Choose Nestlé’ campaign, to educate over 15,000 consumers on a healthy diet and lifestyle
• The company scaled up its Nestlé Healthy Kids Programme and 152,000 school children were educated on nutrition and the importance of physical activity.