Sri Lanka’s Nestlé unit net up 34-pct in December quarter

kurunegala nestle

Feb 22, 2017 (LBO) – Profits at Nestlé Lanka, a unit of a Swiss-based food group, rose 34 percent to 860 million rupees in the December 2016 quarter from a year earlier.

The firm reported earnings of 16.01 rupees per share for the quarter, against 11.92 rupees reported a year earlier. The stock closed at 1,998 rupees on Tuesday.

In the twelve months to December the firm reported earnings of 81.87 rupees per share on total profits of 4.4 billion rupees, a 7 percent profit increase from a year earlier.

Revenue rose 2 percent to 8.6 billion rupees in the December quarter and cost of sales rose at a faster 3 percent to 5.3 billion rupees, while gross margins were flat at 3.3 billion rupees.

Marketing, selling and distribution expenses dropped 14 percent to 1.6 billion rupees in the December quarter.

The unit reported an actuarial gain of 27 million rupees for the quarter against a loss of 16 million rupees, a year earlier.

An income tax assessment of 285 million rupees has been issued by Inland Revenue Department on the company for financial years from 2011 to 2013.

“A formal appeal to the Commissioner General of Inland Revenue has already been lodged, setting out our submissions and requesting for withdrawal of the assessment.”

“The company believes it has a strong case,” the company said.

The directors have declared an interim dividend of 40 rupees per share today and have also proposed a final dividend of 40 rupees per share for the year subject to approvals.

Annual General Meeting of Nestlé Lanka is scheduled to be held on 05 May 2017.

The company had a 9.18 percent public holding represented by 5,306 shareholders at the end of the quarter and the market capitalization of the public holding is 9.9 billion rupees.

The company manufactures a range of items under the license from Nestle SA Vevey Switzerland which holds 91 percent of Nestle Lanka.