Milco has successfully reached a monthly sales target of Rs. 2 billion in October 2024, marking the highest revenue recorded in a single month. This achievement is particularly significant as it follows the establishment of the new government, reflecting positive momentum for the state-owned dairy company.
Key Highlights:
- Positive Milestone: Livestock Ministry Secretary Nishantha Wickramasinghe praised the achievement, viewing it as a hopeful indicator for Milco’s future. He noted that this success comes just a month after the new government took office.
- Outstanding Debt: Despite the record sales, Milco is currently facing financial challenges, with an outstanding bank loan of Rs. 1.8 billion and an annual interest payment of Rs. 240 million. The previous government had considered selling Milco due to ongoing losses, but the new administration aims to restore its profitability.
- Chairman’s Insights: Milco’s Chairman, Hemajeeva Gotabhaya, acknowledged the hurdles faced by the company, including a severe labor shortage. Upon taking office, he found Milco in a dire financial situation, with payments to dairy farmers delayed by approximately two weeks and an inactive internal audit division that hindered proper financial oversight.
- Strategic Transformation: Gotabhaya emphasized the commitment of the board to transform Milco into a profitable organization. Plans are underway to ensure the availability of Milco products across the country in the necessary quantities, addressing supply chain and distribution challenges.
This record achievement of Rs. 2 billion in sales not only underscores Milco’s potential for growth but also reflects the concerted efforts of its leadership and the government to revive and sustain the dairy industry in Sri Lanka.
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Last modified: November 4, 2024
