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Nestlé Lanka records strong performance in 2022

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Jason Avanceña

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.



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ComBank hands over fully refurbished wards at De Soysa Hospital for Women

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Pictured here are the representatives of the Bank and senior officials of the hospital at the ceremonial handing over of the refurbished ward.

The Commercial Bank of Ceylon recently handed over Wards No. 03 and 04 of the De Soysa Hospital for Women, after the completion of a comprehensive renovation project launched in March this year to mark International Women’s Day.

Wards 03 and 04 handle a substantial share of the hospital’s patient load, and account for approximately 2,500 to 3,000 deliveries and 4,000 to 5,000 admissions annually. Their refurbishment was designed to significantly enhance patient care, safety and comfort, and directly benefit thousands of mothers and newborns.

Five Trustees of the Commercial Bank’s Corporate Social Responsibility Trust participated in the formal handing over of the refurbished wards to the hospital authorities. They were Sharhan Muhseen, the Bank’s Chairman, Raja Senanayake, Deputy Chairman, Sanath Manatunge, Managing Director/CEO, Hasrath Munasinghe, Chief Operating Officer, and Prasanna Indrajith, Chief Financial Officer.

Established in 1879, the De Soysa Hospital for Women is the first maternity hospital in Sri Lanka and the second oldest in Asia and is credited with, among others, performing the country’s first caesarean section in 1905 and establishing one of its earliest organised operating theatres in 1907.

The Commercial Bank’s Corporate Social Responsibility Trust, through which this project was implemented, has via its healthcare-related interventions supported more than 100 government hospitals with essential equipment and infrastructure, contributed to emergency medical services through the ‘Adopt an Ambulance’ initiative, and implemented targeted community health interventions such as water storage solutions for families affected by kidney disease.

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IIHS expands global nursing pathways

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Dr. Renuka Jayatissa and Dr. Kithsiri Edirisinghe speaking to the media

The International Institute of Health Sciences (IIHS) Multiversity is expanding its international education programmes with the aim of creating overseas employment opportunities for Sri Lankan nurses and allied health professionals while contributing to foreign exchange earnings.

Speaking to the media during a conference at IIHS Multiversity in Kerawalapitiya, Dr. Kithsiri Edirisinghe, CEO, Co-Founder and Dean of IIHS aid that the institute has established academic partnerships with overseas universities and higher education institutions, including the University of Surrey in the UK, Deakin University in Australia, Metropolia University of Applied Sciences in Finland, Asia e University in Malaysia and SUNY Canton in the United States.

Under its ‘Study in Sri Lanka, Graduate to the World’ model, students can complete foundational and diploma-level qualifications locally before progressing to international top-up degrees or overseas employment.

Dr Edirisinghe said the model could substantially reduce the cost of obtaining internationally recognised qualifications. It estimates that completing a four-year bachelor’s degree at the University of Surrey in the UK would cost about USD 145,700, including tuition and living expenses, compared with about USD 27,750 through the IIHS pathway in Sri Lanka.

Dr Edirisinghe said the institute’s focus on overseas deployment addressed both Sri Lanka’s economic needs and the growing global demand for healthcare workers.

“Our winning model is producing job-ready, registration-ready healthcare professionals who can seamlessly enter foreign healthcare systems,” he said.

IIHS, which began operations in 2002 as the American College of Health Sciences, established its institutional base in Welisara in 2008 and launched its purpose-built greenfield multiversity campus in 2023.

The institute said it has upgraded the qualifications of more than 5,000 government nurses, supported over 2,500 youth on international employment pathways and trained more than 1,000 allied health professionals. It has also carried out over 250 community health projects.

The institute has identified Germany and Japan among its target markets, with pathways planned for 2,000 nurses for Germany and a one-year preparation programme linked to around 4,000 healthcare positions in Japan.

Dr. Renuka Jayatissa, Vice-Chancellor and a specialist medical doctor, said demographic changes and the growing burden of non-communicable diseases were changing healthcare requirements in Sri Lanka.

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Sampath Bank launches Sri Lanka’s first community-powered book discovery platform at Colombo International Book Fair

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Sampath GPay customers can enjoy 25% cash back on Book Fair purchases

Sampath Bank PLC has launched Sampath Book Finder, Sri Lanka’s first community-powered book discovery platform, giving visitors to the Colombo International Book Fair a faster and more seamless way to find the books they are looking for across the fair’s 150+ stalls, while also opening up new opportunities to discover titles recommended by fellow readers.

Introduced on the opening day of the Colombo International Book Fair on 25 September, Sampath Book Finder brings together digital innovation and the collective knowledge of readers to address a familiar challenge at one of Sri Lanka’s largest literary gatherings, where the scale of the fair can make locating a particular title a time-consuming exercise. When a book proves difficult to locate, visitors can access bookfairtracker.com or scan the designated QR code and submit a request to the community, allowing readers who have already spotted the title to share its location and help others find it without having to search stall after stall.

Commenting on the initiative, Milinda Weerasinghe, Chief Marketing Officer, Sampath Bank PLC, said, “At Sampath Bank, we believe meaningful innovation begins by identifying everyday challenges and creating solutions that make a real difference. Sampath Book Finder brings this thinking to the Colombo International Book Fair by turning the collective knowledge of readers into a real-time digital solution, empowering them to find what they are looking for, discover something new and help others do the same, while making the overall experience more convenient and connected.”

The platform also turns book discovery into a shared experience, allowing visitors to recommend books they encounter by sharing the title, publisher, hall and stall number, which enables fellow readers to discover sought-after titles and recommendations while making it easier to locate them within the fair.

Sampath Bank’s longstanding association with the Colombo International Book Fair also continues in 2026, marking more than 20 years of partnership, with the Bank serving as the Official Banking Partner for this year’s fair. As part of its presence at the event, SampathCards offer 25% cashback for Sampath GPay customers on their purchases and 3 months 0% instalment plans for book purchases via Sampath credit cards, while visitors can also access banking services through the Bank’s physical presence at the fair. Customers registering to open selected Fixed Deposits at the premises will receive an additional 0.25%, adding further value and convenience for visitors.

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