Nestlé Lanka PLC says its first quarter performance for the three months to March 31 this year (Q1) showed ‘strong revenue’ growth of 14% (YoY) with a revenue of Rs. 7.3 billion and a net profit of Rs. 462 million amidst a difficult market environment.
But the company said 2012 is going to be a challenging year.
It said net profit for Q1 was down 25% (YoY) due to the currency depreciation effected early on this year and the rise in fuel and energy costs which resulted in a significant increase of costs for its manufacturing operations. “However Nestlé continued its investment commitment to the country in Q1 despite trying economic conditions with a new noodle manufacturing plant to increase output for its popular MAGGI Noodles range in Sri Lanka and also a new UHT milk plant to further expand the company’s capacity for its popular dairy based beverages,” the company said in a media statement.
Alois Hofbauer, Managing Director of Nestlé Lanka noted that 2012 is turning out to be a testing year.
“We are operating in an even more difficult environment than the year before and are facing multiple challenges. While we have delivered a strong revenue growth, various external elements have had a significant impact on our Q1 net profit,” he said adding however that the company was able to uphold its commitment to ‘Creating Shared Value’ for Nestlé and local communities during this difficult time.