Nestle Lanka Plc yesterday announced its revenue for 2016 has increased by 5% to Rs. 36.5 billion despite tough market conditions.
Profit after tax was up 6.7% to Rs 4.4 billion for the full year ending 31 December 2016.
Tax increases resulted in some erosion in the Q4 2016revenue of Rs. 8.6 billion.
Nestle said in a statement the impact of cost increases and taxes was partially mitigated through focus on driving efficiencies across the value chain.
The Board approved an interim dividend of Rs. 40 per share on 21February and has proposed a final dividend of Rs. 40 per share for the full year, to be approved at the company's Annual General Meeting on 5May.
Nestle Lanka's Managing Director ShivaniHegde stated:'2016 has witnessed a very challenging business environment. Our steady progress and the external recognitions are a testament to the trust consumers place in our products, and the skills of our people. 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 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.
NesprayEveryday,which offers the goodness of locally sourced Sri Lankan milk, was fortified with iron and other micronutrients. The company also launched Nespray FortiGrow, a Hi -Calcium milk drink, designed to support the nutritional needs of school-aged children.
Maggi Chicken and Maggi Curry noodles were enhanced with the goodness of popular home ingredients like vegetables and spices. Maggi also introduced Maggi Daiya Chicken noodles - a spicier variant fortified with calcium. Maggi was once again voted 'Food Brand of the Year' for the fourth consecutive year at the SLIM Nielson People's Awards.
Milo strengthened its 'Mom, Me and My Milo' campaign that encourages children to lead an active lifestyle and start the day with a healthy breakfast. Nestomalt was recognized as one of Sri Lanka's Top 10 FMCG brands in the Kantar Worldpanel Brand Footprint study 2016, from a total of 400 brands in the country. Its popular coffee brand Nescafe, introduced a new Nescafe 3 in 1 coffee mix, offering more coffee and a richer aroma for an authentic coffee experience.
Nestle Professional continued to provide food and beverage solutions to the 'Out-of-Home' sector, and introduced the Nestle CoolPro beverage system to deliver a refreshing beverage, Nestle Sjora, a delicious flavour fusion of mango, peach and milk.
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:
'KiriGoviDiriya' program, 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 Program' 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 Nestle' campaign, to educate over 15,000 consumers on a healthy diet and lifestyle
The company scaled up its Nestle Healthy Kids Program and 152,000 school children were educated on nutrition and the importance of physical activity
Continuing its efforts to enhance the nutritional knowledge of Government Midwives, the Nestle Nutrition Institute wasrecognised for the second year by the Ministry of Health. Nestle also supported the rural economy with a contribution of over Rs. 6 billion to the local dairy and coconut industries, for procurement of fresh milk and coconuts from 27,000 farming families.
© Pakistan Press International, source Asianet-Pakistan