Competitor Analysis
Transcript: Turnover for the year 2012 was at Rs.5,263,000,000 Rs.4,548,974,053 Milco Spends on advertising 2011 Rs.3,733,923,000 2009 Lakspray Nestle Lanka Milk Foods Maliban Reported the lowest net profit since 2009: Rs.4,601,000 Rs.16,380,000 2013 2013 Lakspray 700% increase in sales before 2010. Nestle Maliban milk powder was asked to be taken off the shelves due to reports that the milk powder was contaminated with DCD. There were a number of other milk powder brands that were asked to do the same. However, it did affect Maliban milk profits for the year 2013. Net Profit Ratio: 1% 2012 Highest growth in the milk powder category 2010 Maliban Rs.10,640,000 Loss of Rs.226,000,000 Rs.37,240,000 Maliban Net Profit Ratio: 2% Rs.73,800,000 2012 Rs.332,156,255 REVENUE 2012 Rs.19,437,934,000 Rs.30,000,000,000 annual turnover 2013 Despite the DCD issue, the company as a whole (Lanka Milk Foods) reported the highest net profits compared to the past five years with Rs.231,000,000 Rs.3,259,460,000 Following the DCD crisis, the advertising of imported milk powder was banned in 2013 2010 Rs.25,805,708,000 Rs.3,190,564,000 2012 2013 Competitor Analysis Maliban 2012 Farmer Managed Societies (FMS) Services such as free transport to the FMS, training for modern dairy production etc. Benefits for farmers in terms of healthcare etc. Consumer information and support programs regarding nutrition Healthy kids program Rural development in terms of training and technical asistance etc Water and environment sustainability Profits Purchasing extra liquid milk in order to support the farmers 2011 Rs.2,969,741,000 2010 Rs.4,242,074,424 DCD contamination reports Lowest net profit ratio's for Lakspray Lanka Milk Foods June 2013 Revenue: Rs.15,300,000,000 2011 Rs.906,000,000 Net Sales Value (NSV) Education programs on dairy nutrition Employee welfare Religious ceremonies for the community Rs.28,571,488,000 With much demand in the country for full cream milk powder, the key competitors for the Fonterra company (producer of Anchor and Ratthi) would be milk powder brands such as Nespray, Nespray Everyday, Maliban, Lakspray, Ambewela, and Highland. Once known as a country in which the demand for full cream milk powder was consistently growing, there have been changes in the market for the past few years. There is also much competition being created amongst the major brands, some of which are internationally renowned, while others are more locally based. 2011 2011 For Lakspray between 2009 and 2012 Highest net profit ratio (2010): 37% with turnover of Rs. 3,259,000,000 2012 PROFITS Profits of some brands have declined over the past few years while others have experienced more gains. Despite the controversy that had been surrounding powdered milk during the past year, it is predicted that the overall full cream milk powder market would experience a surge in demand in the next quarter or in the near future. REVENUE Milco has experienced declining profits for the past five years. Rs.28,440,000 2012 2009 2012 Rs.47,880,000 2013 - 3RD QUARTER 2009 - 2012: 53% growth in profits Milco Workers strike Profit (or loss) Maliban Reasons for declining profits Maliban Lanka Milk Foods DCD SCARE Loss of Rs.23,000,000,000 Rs.21,439,008,000 2011 Milco TURNOVER Nespray Overall Market Nestle 2009 Rs.4,093,051,886 Rs.3,428,867,000 2009 Rs.2,977,668 Increasing fuel prices 2009 Nespray Rs.146,940,000 Maliban Corporate Social Responsibility (CSR) Abhayadana program Monthly scholarships for students who excel in their studies 2010 Rs.33,180,000