Nestle Lanka continues Rs 10bn investment plan; to comply with listing rule

Sep 01, 2015 (LBO) – Nestlé Lanka, a unit of the Swiss-based food group, said they would continue to invest in infrastructure, brands and people as part of a 5-8 year plan to invest 10 billion rupees in the island.

“We’ve so far invested about four billion rupees and this is ongoing and there is no reversing on that,” Bandula Egodage, vice president corporate affairs and communications of Nestle Lanka, said. In 2010 the company announced plans to invest between 8 to 10 billion rupees in an accelerated growth plan over the next eight years, Egodage said while participating at the market opening bell ringing ceremony at the Colombo Stock Exchange Tuesday. “We are committed to this and are working on it.’ The Company also said that it's planning on complying with the islands CSE listing rule of 80 percent local ownership. “We will comply with this rule and we have till the end of 2016 to do it,” Egodage said. A listed foreign company has to have an 80 percent local ownership to be listed in the main board of the CSE according to current listing rules. Nestle is 90 percent owned by foreigners at present.

Nestle Lanka’s profits rose 33 percent to 1.3 billion rupees in the June 2015 quarter from a year earlier and the firm reported earnings of 24.18 rupees per share for the quarter against 18.16 rupees reported a year earlier.

At mid day the company stock was trading at 2,098.00 rupees, up 48.00 rupees.