Business
Nestlé Lanka records strong performance in 2022
Continues to contribute positively to Sri Lanka amidst unprecedented challenges
The Board of Directors of Nestlé Lanka, 20 February 2023, approved results for the fourth quarter and full year ended 31 December 2022.
Sharing his thoughts on the results, Jason Avanceña, Managing Director of Nestlé Lanka said “It gives me immense pride to witness the performance of the company during 2022, which was perhaps one of the most challenging years in Nestlé Lanka’s 115-year long journey in Sri Lanka. I am pleased to say that our team, as well as our stakeholders across and beyond the value chain, demonstrated exemplary perseverance and agility in the face of ever-changing challenges, leveraging our deep understanding of Sri Lankan consumers to ensure continued supply of high-quality nutritious products, which are also good for the planet, no matter the circumstances.
‘Reinforcing our commitment and positive contribution to Sri Lanka and its people, we achieved strong broad-based growth across all our business units during the fiscal year ended 31 December 2022. Accordingly, the company reported a growth of 62.3%, which was driven by necessitated pricing to protect profitability amidst unprecedented cost increases. Positive volume growth in H1/Q3 slowed down in Q4 due to lower spending by consumers driven by high inflationary pressures. The company also recorded a 76.8% growth in its export business, contributing much-needed foreign currency to the economy through its exports to over 55 countries across the globe. Net profit increased by 14% as compared to the last fiscal year; however, net profit as a percentage of sales is lower by 3.5%, which was impacted due to exchange losses including unrealised exchange losses on the Intra Group loan obtained to ensure business continuity and increased corporate tax rates for H2, 2022.
‘Overall operation and profitability were challenged by the significant rupee depreciation coupled with currency shortages, inflation, higher commodity and logistics costs, and changes in import regulations. Nevertheless, I am happy to note that these challenges were mitigated by taking measures such as optimization of the value chain and product portfolio through localization and cost efficiencies where possible, driving exports and effective utilisation of forex.
‘This noteworthy performance in 2022 was complemented by our continued, unwavering efforts towards doing good for families, communities, and the planet, irrespective of the challenging socio-economic circumstances that prevailed. I am delighted that we took strides in our commitment of doing good for Sri Lanka, whilst also furthering our investments with the hope of amplifying our contribution towards the country in the years to come.
‘As a company that has stood by its stakeholders through good and trying times for over 115 years, we embarked on a series of projects to give back to communities in this hour of need. These efforts included distributing ‘Nestlé Care Packages’ to over 3,500 staff attached to the company’s value chain partners and over 240 stakeholders in our dairy value chain as well as collaborations with SOS Children’s Villages Sri Lanka and Sarvodaya Shramadhana Movement to help those in need navigate through volatilities.
‘Further, reaffirming our steadfast commitment towards Sri Lanka, we invested over Rs. 2 billion in our state-of-the-art factory in Kurunegala by building a new Vacuum Band Dryer. Aimed at expanding the capacity of our manufacturing facility for malted food – i.e., Nestlé Nestomalt and Nestlé Milo, this investment further strengthens our efforts of positively impacting Sri Lanka and its people.”
Financial Highlights – Full Year 2022
• Total Sales of Rs. 73,707 million
• Domestic Sales Growth at 59.1%
• Profit from Operations at 16.5%
• Net Profit of Rs. 6,076 million
• Contribution to exchequer of Rs.11,152 million
Dividend
The Board of Directors have declared an interim dividend of Rs. 55 per share on 20 February 2023 and have also proposed a final dividend of Rs. 75 per share for the year ended 31 December 2022; subject to approval by the shareholders at the upcoming Annual General Meeting. Part of this will be paid out of 2022 profits and the balance through previous years’ retained earnings.
The Delegation of German Industry and Commerce in Sri Lanka (AHK Sri Lanka) proudly facilitated the first-ever Sri Lankan delegation’s participation at Drupa 2024, the world’s largest trade fair for the printing industry and technology. Held after an eight-year hiatus, Drupa 2024 was a landmark event, marking significant advancements and opportunities in the global printing industry.
AHK Sri Lanka played a pivotal role in organising and supporting the delegation, which comprised 17 members from the Sri Lanka Association for Printers (SLAP), representing eight companies from the commercial, newspaper, stationery printing, and packaging industries. This pioneering effort by AHK Sri Lanka not only showcased the diverse capabilities of Sri Lanka’s printing sector but also facilitated vital bilateral discussions with key stakeholders from the German printing industry.
Business
Unveiling Ayugiri: Browns Hotels & Resorts sets the stage for a new era in luxury Ayurveda Wellness
In a captivating reimagining of luxury wellness tourism, Browns Hotels & Resorts proudly unveiled the exquisite Ayugiri Ayurveda Wellness Resort Sigiriya. This momentous occasion, celebrated amidst a vibrant and serene grand opening on the 6th of June, heralds a new chapter in the Ayurveda wellness tourism landscape in Sri Lanka. Nestled amidst 54 acres of unspoiled natural splendour, Ayugiri features 22 exclusive suites and stands out as the only luxury Ayurveda wellness resort in the country offering plunge pools in every room, rendering it truly one-of-a-kind.
The grand opening of Ayugiri Ayurveda Wellness Resort was an enchanting event, where guests were captivated by the melodies of flutists and violinists resonating through Sigiriya’s lush landscapes. As traditional drummers and dancers infused the air with vibrant energy, Browns Hotels & Resorts’ CEO, Eksath Wijeratne, Kotaro Katsuki, Acting Ambassador for the Embassy of Japan and General Manager, Buwaneka Bandara, unveiled the resort’s new logo, marking a significant moment witnessed by distinguished guests from the French Embassy, Ayurveda and wellness enthusiasts along with officials from the Sigiriya area, LOLC Holdings and Browns Group.
“Our strategic expansion into wellness tourism with Ayugiri Ayurveda Wellness Resort Sigiriya symbolises a significant milestone for Browns Hotels & Resorts. Wellness tourism has consistently outperformed the overall tourism industry for over a decade, reflecting a growing global interest in travel that goes beyond leisure to offer rejuvenation and holistic well-being. By integrating the timeless wisdom of Ayurveda with modern luxury, we aim to set a new standard in luxury wellness tourism in Sri Lanka. Whether your goal is prevention, healing, or a deeper connection to inner harmony, Ayugiri offers a sanctuary for holistic well-being” stated Eksath Wijeratne.
Ayugiri encapsulates the essence of life, inspired by the lotus flower held by the graceful queens of the infamous Sigiriya frescoes. Just as the lotus emerges from the murky depths, untainted and serene,
Ayugiri invites guests on a journey of purity and rejuvenation, harmonised with a balance of mind, body and spirit, the essence of nature, echoes of culture and the wisdom of ancient Ayurvedic healing.
HNB General Insurance, one of Sri Lanka’s leading general insurance providers, has been honored as the Best General Bancassurance Provider in Sri Lanka 2024 by the prestigious Global Banking and Finance Review – UK.
The esteemed accolade underscores HNB General Insurance’s unwavering commitment to excellence and its outstanding performance in the field of bancassurance. Through dedication and hard work, the HNB General Insurance team has continuously endeavored to deliver innovative insurance solutions, cultivate strong relationships with banking partners, and provide unparalleled service to customers nationwide. This recognition is a testament to the team’s dedication and relentless pursuit of excellence in the bancassurance business.
“We are honored to receive this prestigious award, which reflects our team’s tireless efforts and dedication to delivering value-added insurance solutions and exceptional service through our bancassurance partnerships,” said Sithumina Jayasundara, CEO of HNB General Insurance. “This recognition reaffirms our position as a trusted insurance provider in Sri Lanka and motivates us to continue striving for excellence in serving our customers and communities.”
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