As per provisional results, net profit for the full year at Rs. 2.9 billion was in line with revenue growth and also benefitted from tax concessions on investments in fixed assets.
“Volatile market conditions, currency depreciation and a significant increase in fuel, energy and input costs posed massive challenges for Nestlé Lanka in 2012. However, we’re pleased that we were able to deliver double digit growth under difficult circumstances. We invested responsibly and sustainably and, with creativity and innovation, laid the foundation for future growth. Despite the many challenges we foresee, we remain cautiously optimistic for 2013,” said Ganesan Ampalavanar, Managing Director of Nestlé Lanka.
Continuing its ongoing investments in its manufacturing facility in Kurunegala, Nestlé Lanka has invested over Rs. 3 billion in the last two years. The company marked a significant milestone when it recorded its highest annual procurement of local fresh milk in 2012, evidencing a growth of over 20% from the previous year.
This, together with its procurement of other raw materials including coconut, marks the company’s highest annual contribution to the rural economy, paying out Rs. 4 billion in 2012 to more than 23,000 local farming families.
The ‘Good Food, Good Life’ company continued to add to its new product portfolio for 2012 in Q4 with Lactogrow – a unique growing-up milk formula fortified with probiotics to stimulate a healthy gut flora, tummy comfort, visual and growth development.
Other innovations for the year were Maggi Ricey noodles, the Maggi Devilled noodles range, Nescafé Ice Coffee ready-to-drink and the re-launch of Kit Kat. 2012 also saw the company expand its communications offering to the digital platform, launching its corporate website www.nestle.lk and its first Facebook page, Kit Kat Sri Lanka.