Sri Lanka Nestle unit profits up 3.9-pct

Nov 02, 2012 (LBO) – Sri Lanka’s Nestle Lanka Plc, a unit of Switzerland Nestle, said profits in the September quarter rose 3.9 percent from a year earlier to 798 million rupees as it took steps rolex replica to counter the effects of a depreciating currency and higher energy costs. The firm reported earnings of 14.86 rupees for the quarter. In the nine months to September the Nestle reported earnings of 37.74 rupees on total profits of 2,044 million rupees which were barely changed from 2,027 million a year earlier.

The stock closed at 1,206 down 3.90 rupees on Thursday.

In the September 2012 quarter revenues rose 4.1 percent to 7.09 billion rupees, cost of sales fell 14.2 percent to 4.7 billion rupees and gross profits grew 2.8 percent to 2.3 billion rupees.

“The current volatile market conditions, with the currency depreciation and a significant increase in fuel, energy and input costs posed massive challenges for Nestlé Lanka this year,” the firm said in a statement.

“The company has been able to offset most of these impacts through a series of price increases, cost saving initiatives and tax relief relating to the investments made by the company in the last two years.”

Financing expenses rose to 33 million rupees in the September 2012 quarter from 6.3