21 April 2011
Nestlé (Malaysia) Berhad posted a turnover of RM4.0 billion for the Financial Year Ended 31 December 2010.
- Nestlé (Malaysia) Berhad posted a turnover of RM4.0 billion for the Financial Year Ended 31 December 2010, a 7.5% increase over the previous financial year, benefiting from positive consumer sentiments and renewed confidence arising from strong developments in both the global and local economies.
Focused on improving operational efficiencies and "war on waste", the Group's ongoing Nestlé Continuous Excellence (NCE) initiative provided some relief against the sharp increase and continued volatility in the prices of key raw materials last year.
The Group's strategic decision to invest in new production lines for soluble coffee and coffee creamers in the past 2 years, has allowed the business to expand and capture strong demand from key overseas markets. Shipments to Southeast Asian countries in particular, resulted in a significant double-digit growth of the Company's export business. This contributed to the Group's overall sales, representing 24% of the total turnover.
As a result of the Group's improved operating environment, the domestic product categories continued to perform well with Nestlé Liquid Drinks and Chilled Dairy registering double-digit growth. From a channel perspective, both retail and out-of-home sales also enjoyed strong growth.
During the year, the Group continued to invest in its brands to maintain its leadership and expand its foothold in key market segments. The "MILO with PROTOMALT" and the
"MILO PLAY MORE LEARN MORE" campaigns have further strengthened the brand image of MILO amongst its consumers. Meanwhile, NESCAFÉ CLASSIC and NESCAFÉ 3in1 premix
re-launched new improved coffee products with strong media support, which resulted in significant market share gains. Despite substantial investments in various brand-building activities, the Group's operational expenses were kept below budget.
Nestlé Malaysia is also the Halal Centre of Excellence for the Nestlé Group and offers its expertise, knowledge and resources to companies in Malaysia and globally. The Group continued its promotion activities to expand its exports and sustain the growth of the Halal product segment.
From a bottom line perspective, the profit before tax stood at RM465.7 million, a 5.8% increase compared to the previous financial year, translating in a slight margin reduction of 20bps.
Additionally, Halal tax incentives related to the substantial capital investments of the last three years helped reduce the Group's effective tax rate. Net profit increased by 11.3% to RM391.4 million, reflecting a 30bps margin improvement against the same period last year.
In view of the improved performance in 2010, the Board has recommended a final net dividend of RM1.15 per share, giving a total net dividend proposed and declared for the financial year of RM1.65 per share, representing an increase of 10% over the previous year.