Nestlé Milkpak Ltd achieved consolidated sales of Rs 12.9 billion in 2004, showing a growth of 22.3 percent as compared to previous year. According to a press release issued by the company here on Monday, its consolidated net profit rose by 30 percent to Rs 979 million, which represents a net profit margin of 7.6 percent.
Although there was a slight decline of 10 basis points in operating profit margin, mainly due to the high price of fresh milk, which could not be fully recovered through selling price increase, yet lower financial costs, better tax planning and cost saving initiatives in production and purchasing compensated the decline to a large extent.Data revealed that total growth in export sales increased by 27 percent up to Rs 696 million. Exports to Afghanistan stood at Rs 660 million, which represents a 35 percent increase over the previous year.
Consistent strong sales growth was observed across all product categories and was supplemented by new product introductions. This was in line with the Company's stated objective of relying on innovation and renovation and increasing its product portfolio for the growth of its business. The Company also focused on the expansion of distribution infrastructure to meet its corporate objectives for 2004 and the future challenges.
The financial results for the year 2004 were approved by the board of directors last week.
The Board of Directors has recommended a final cash dividend of 50 percent (Rs 5.00 per share of Rs 10 each) for the financial year ended December 31, 2004. The AGM of the company shareholders will be held on April 28, 2005.-PR
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