Sri Lanka’s Nestlé unit net up 4-pct in Dec quarter

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Feb 24, 2016 (LBO) – Nestlé Lanka, a unit of a Swiss-based food group said profits rose 4 percent to 640 million rupees in the December 2015 quarter from a year earlier.

The firm reported earnings of 11.92 rupees per share for the quarter against 11.44 rupees reported a year earlier.

In the twelve months to December the firm reported earnings of 76.77 rupees per share on total profits of 4.1 billion rupees, a 9 percent profit increase from a year earlier.

The stock closed at 2,003.30 rupees on Tuesday.

Revenues rose 10 percent to 8.7 billion rupees in the December quarter and cost of sales rose at a slower 0.6 percent to 5.1 billion rupees and gross margins grew 27 percent to 3.6 billion rupees.

Marketing, selling and distribution expenses rose 37 percent to 2.1 billion rupees in the December quarter.

Revenues rose 9 percent to 35.8 billion rupees in the year and cost of sales rose at a slower 3 percent to 21.3 billion rupees and gross margins grew 19 percent to 14.4 billion rupees.

The company has paid 638 million rupees as Super Gain Tax during the year.

The Directors have declared an interim dividend of 34.50 rupees per share yesterday and have also proposed a final dividend of 30.00 rupees per share for the year subject to necessary approvals.

Annual General Meeting of Nestlé Lanka will be held on 05 May 2016.

The company currently has a 9.18 percent public holding represented by 5,411 shareholders.