Nestle Lanka : Q2/2023,

Quarter Performance (Unaudited)

For the Period Ended 30 June

Q2 2022

Q2 2023

%

2022

2023

%

Rs.'000s

Rs.'000s

Change

Rs.'000s

Rs.'000s

Change

Revenue

18,039,660

18,499,716

2.6

33,091,284

39,177,639

18.4

Cost of Sales

(11,658,288)

(12,056,400)

3.4

(21,358,250)

(24,727,225)

15.8

Gross Profit

6,381,372

6,443,316

1.0

11,733,034

14,450,414

23.2

Other Operating Income / (Expense)

952,366

253,340

-73.4

(599,931)

631,237

-205.2

Marketing, Selling and Distribution Expenses

(1,628,092)

(2,610,691)

60.4

(3,318,769)

(5,405,129)

62.9

Administrative Expenses

(860,205)

(927,546)

7.8

(1,536,403)

(1,829,778)

19.1

Results from Operating Activities

4,845,441

3,158,419

-34.8

6,277,931

7,846,744

25.0

Net Finance Income/ (Expense)

(3,508,632)

185,420

-105.3

(4,020,048)

733,550

-118.2

Profit before Taxation

1,336,809

3,343,839

150.1

2,257,883

8,580,294

280.0

Income Tax Expense

(206,917)

(976,380)

371.9

(302,867)

(2,547,722)

741.2

Profit for the Period

1,129,892

2,367,459

109.5

1,955,016

6,032,572

208.6

Other Comprehensive Income - Net of Tax

-

-

-

-

Total Comprehensive Income - Net of Tax

1,129,892

2,367,459

109.5

1,955,016

6,032,572

208.6

Basic Earnings Per Share (EPS.) Rs.

21.03

44.07

36.39

112.29

....................................

....................................

Kumudu Dias

Bernhard Stefan

Director Finance & Control

Managing Director

28 July 2023

As at :

31.12.2022

30.06.2023

Rs.'000s

Rs.'000s

Audited

Unaudited

ASSETS

Non-Current Assets

Property, Plant and Equipment

7,755,061

7,459,626

Capital Work-In-Progress

2,243,392

2,336,135

Other Non-Current Assets

276,015

342,597

Deferred Tax Assets

269,392

-

Net Retirement Benefit Asset

-

53,704

10,543,860

10,192,062

Current Assets

Inventories

12,711,455

10,591,968

Trade and Other Receivables

4,806,806

5,458,136

Amount due from Related Parties

1,034,828

635,418

Cash and Cash Equivalents

17,797,568

16,278,236

36,350,657

32,963,758

Total Assets

46,894,517

43,155,820

EQUITY AND LIABILITIES

Equity

Stated Capital

537,255

537,255

Retained Earnings and Reserves

10,205,280

9,271,037

10,742,535

9,808,292

Non-Current Liabilities

Retirement Benefit Obligations

17,160

-

Deferred Tax Liabilities

-

181,300

Non-Current Provisions

895,750

860,247

Non-Current Financial Liabilities

14,192,312

6,342,393

15,105,222

7,383,940

Current Liabilities

Trade and Other Payables

9,379,848

9,886,851

Amount due to Related Parties

6,177,210

2,293,675

Current Tax Payable

2,633,326

2,730,355

Dividend Payable

2,799,537

5,464,894

Current Financial Liabilities

56,839

5,587,813

21,046,760

25,963,588

Total Liabilities

36,151,982

33,347,528

Total Equity and Liabilities

46,894,517

43,155,820

As at (Rs.) :

31.03.2020

31.12.2022

30.06.2023

Net asset value per share

Rs. 86.29

199.95

182.56

Market value per share during the quarter

- Highest

1,300.00

964.75

1,140.00

- Lowest

1,001.50

870.00

1,054.00

- Last traded price (Date 31/12/2022, 30/06/2023)

1,011.30

905.00

1,120.25

......................................

....................................

Kumudu Dias

Bernhard Stefan

Director Finance & Control

Managing Director

For the Period Ended 30 June

2022

2023

Rs.'000s

Rs.'000s

Cash Flows from Operating Activities

Profit before Taxation

2,257,883

8,580,294

Adjustments for :

Depreciation of Property, Plant and Equipment

443,594

433,631

Loss/ (Gain) on sale of Property, Plant and Equipment

(50)

(1,405)

Impairment Loss/ (Reversal) on Trade Receivables

-

(17,035)

Provision for/(Reversal of) Inventories

(9,700)

83,970

Imputed Interest cost of Staff Loan

13,641

15,228

Unrealised Loss/ (Gain) on Foreign Exchange

2,560,481

(1,496,248)

Interest Expense

144,906

481,891

Interest Income

(185,019)

(232,068)

Movement of Retirement Benefit Obligation (excluding Actuarial Gain/ Loss)

38,605

25,275

Operating Profit before Working Capital Changes

5,264,341

7,873,533

Working Capital Changes

(Increase)/ Decrease in Inventories

(5,267,347)

2,039,117

(Increase)/ Decrease in Trade and Other Receivables

(2,362,920)

(625,613)

(Increase)/ Decrease in Amount due from Related Parties

145,385

406,356

Increase/ (Decrease) in Trade and Other Payables

4,058,075

1,061,575

Increase/ (Decrease) in Amount due to Related Parties

3,628,516

(3,875,979)

Cash Generated from Operations

5,466,050

6,878,989

Income Tax paid

(547,339)

(2,035,503)

Surcharge Tax paid

(494,347)

-

Retirement Benefit Obligations paid

(129,061)

(96,139)

Net Cash Flows generated from Operating Activities

4,295,303

4,747,347

Cash Flow from Investing Activities

Investment in Property, Plant and Equipment

(434,562)

(656,803)

Proceeds from Sale of Property, Plant and Equipment

50

-

Movement of Other Non-Current Financial Assets

22,816

(66,582)

Net Cash Flows used in Investing Activities

(411,696)

(723,385)

Cash Flow from Financing Activities

Payment of Lease Liabilities

(39,333)

(38,286)

Dividend Paid

(231,546)

(4,301,458)

Interest Paid

(106,576)

(491,400)

Interest Received

146,209

216,840

Net Cash Flows used in Financing Activities

(231,246)

(4,614,304)

Net Increase/ (Decrease) in Cash and Cash Equivalents

3,652,361

(590,342)

Effect of Exchange Rate changes on Cash and Cash Equivalents

3,051,410

(921,321)

Cash and Cash Equivalents at the beginning of the period

6,975,584

17,775,047

Cash and Cash Equivalents at the end of the period

13,679,355

16,263,384

Analysis of Cash and Cash Equivalents at the end of the period

Cash and Cash Equivalents in the Statement of Financial Position

13,779,926

16,278,236

Current Financial Liabilities for the purpose of the Statement of Cash Flows

(100,571)

(14,852)

[Excluding Short Term Lease Liabilities of Rs. 33,461 (2022 - Short Term Lease Liabilities Rs. 59,079) and Intra

Group Loan payable of Rs, 5,539,500 (2022 - nil)]

Cash and Cash Equivalents in the Statement of Cash Flows

13,679,355

16,263,384

Unclaimed Dividend written back

-

14,895

-

14,895

Interim Dividend

-

(1,074,509)

-

(1,074,509)

Final Dividend

-

(1,880,391)

-

(1,880,391)

Balance as at 30 June 2022 (Unaudited)

537,255

5,852,619

71,096

6,460,970

Total Comprehensive Income for 6 months ended 31

December 2022

Profit for the Period

-

4,120,761

-

4,120,761

Other Comprehensive Income/ (Expenses)

-

-

160,804

160,804

Transactions with Owners of the Company

Recognised Directly in Equity

Unclaimed Dividend Written Back

-

-

-

-

Interim Dividend

-

-

-

-

Final Dividend

-

-

-

-

Balance as at 31 December 2022 (Audited)

537,255

9,973,380

231,900

10,742,535

Balance as at 1 January 2023

537,255

9,973,380

231,900

10,742,535

Total Comprehensive Income for 6 months ended 30

June 2023

Profit for the Period

-

6,032,572

-

6,032,572

Other Comprehensive Income

-

-

-

-

Transactions with Owners of the Company Recognised

Directly in Equity

Unclaimed Dividend written back

-

17,495

-

17,495

Interim Dividend

-

(2,954,900)

-

(2,954,900)

Final Dividend

-

(4,029,410)

-

(4,029,410)

Balance as at 30 June 2023 (Unaudited)

537,255

9,039,137

231,900

9,808,292