Nestle Contributes Rs. 5 Billion To Rural Economy

Nestle Lanka PLC has contributed almost Rs.5 billion to the rural economy last year via procurement of fresh milk and coconuts, Ganesan Ampalavanar, Managing Director of the company has told shareholders in the company’s annual report.

“We procured 62 million kilograms of local fresh milk from 18,000 Sri Lankan farmers for our dairy based products, marking our highest ever milk collection in Sri Lanka. We also procured 56 million coconuts for our Maggi Coconut Milk Powder," he said.

Nestle has posted net revenue of Rs.30.9 billion during the year, up from Rs.28.6 billion the previous year, and a profit after-tax of Rs.3.3 billion against the previous year’s Rs.2.93 billion with profit before-tax amounting to 13% of net revenue, up from 12% the previous year.

The company which earned Rs.61.51 per share had paid shareholders Rs.60 per share, up from Rs.54 the previous year, posting a dividend payout ratio of 98%.

The Nestle share which traded last year at a high of Rs.2,550 and a low of Rs.1,500 against a trading range of Rs.1,700 to Rs.870 the previous year last traded in 2013 at Rs.2,100.70, up from Rs.1,593.50 a year earlier.

The company’s Chairman, Etienne Benet, told shareholders in his annual review that Nestle had succeeded in delivering an organic growth of 8.2% together with improvements on its net profit and earnings per share.

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