Nestlé Lanka records Rs.976mn net profit for 2Q

8 August 2014 05:07 am Views - 2682

Nestlé Lanka PLC, the local unit of Swiss-based food multinational reported a net profit of Rs.976 million for the June quarter (2Q14), up from Rs.787 million in the corresponding quarter of the previous year, the interim finance accounts released by the company showed.

The earnings per share improved to Rs.18.16 from Rs.14.65 in the previous year.

The company reported a revenue of Rs.8.1 billion for the quarter under review against Rs.7.5 billion in the corresponding quarter of the previous year while cost of sales stood at Rs.5.1 billion up from Rs.4.9 billion.

 The gross profit for the quarter thus improved to Rs.3 billion from Rs.2.6 billion.

The company reported other operating income of Rs.17 million against an expense of Rs.4.5 million.

The marketing, selling and distribution expenses grew to Rs.1.3 billion from Rs.1.1 billion though administration expenses fell to Rs.457.5 million from Rs.485 million.

“The second quarter of the year consisted of two important product innovations, namely the Maggi noodles range followed by the launch of Nescafé Alegria, geared to add significant value to our existing portfolio.

“Despite continuous challenges in the marketplace, Nestlé Lanka has been successful in maintaining a good revenue growth and consolidating its position as a leader in nutrition, health and wellness in the country.

“We remain cautiously optimistic while continuing our efforts to maintain our growth and performance for the remainder of the year,” Nestlé Lanka PLC Managing Director Ganesan Ampalavanar said.

The net profit grew 22 percent year-on-year (yoy) to Rs.2 billion for the first six months with revenue growing 9.1 percent yoy to Rs.16.7 billion.