To Press Releases listPetaling Jaya,Apr 17, 2014

  • Turnover of RM1.3 billion in Q1 2014, 3.7% higher than the previous corresponding period.

  • Good top line performance driven by robust Domestic growth.

  • Net Profit at RM184 million flat against the same period last year.

For the first quarter ending 31 March 2014, the Group registered a turnover of RM1.3 billion, 3.7% higher than the same period last year.

The growth was led by a robust +9.2% domestic performance which was fuelled by continuous investments in marketing and promotional activities. The Nestlé "Lebih Kebaikan, Lebih Nilai" campaign launched in March has successfully created awareness amongst Malaysians of the importance of healthy lifestyles and also demonstrated that eating healthily is not only pleasurable, but also affordable for families.

During the campaign, a range of key Nestlé products were offered in economic value packs. The campaign offerings resulted in several product categories such as Confectionery, Foods and Liquid Drinks posting a robust double digit growth.

Exports sales came in lower compared to the previous corresponding period. This was mainly due to lower demand from affiliated companies, a trend the Group experienced since the second half of 2013. On a more positive note, against the last quarter of 2013, the first quarter export sales were slightly higher.

From an input cost perspective, the price of the major commodities consumed by the Group was favourable except for Milk Powders, which have risen since last year. Benefitting from the overall commodity trend as well as from higher efficiencies achieved in our operations, the Gross Profit for the first quarter increased by 5.7%, translating in an underlying margin improvement.

The investments in marketing and promotional activities linked to the Nestlé "Lebih Kebaikan, Lebih Nilai" campaign have strengthened the brands and have driven strong sales. In terms of timing, these investments took place in the first quarter which is earlier than in previous years. As a result, the operating profit declined slightly compared to last year's quarter. A lower tax expense however helped the Net Profit of RM184 million to remain flat against the same period last year.

Current Year Prospects

We remain cautiously optimistic for the remaining of 2014. The external environment is showing some signs of recovery in the developed world while the emerging markets economies are still experiencing volatility. The Group will continue to leverage on the stable growth of the Malaysian economy and remain active in innovating and renovating its product portfolio while promoting nutritionally balanced diets and healthy lifestyles in line with the Government's goal of creating a healthy and productive society.

The Group will remain focused on growing both top and bottom line while continuing its long term strategy of investing in manufacturing capacity to support its growth. This is reflected by the construction of the Sri Muda factory which is planned to start operations by the fourth quarter of 2014. The Group will also continue to intensify its marketing investments in line with Nestlé's objective of being the leader in Nutrition, Health & Wellness, as well as being an industry benchmark for its financial performance and trusted by all stakeholders.


Nestlé (Malaysia) Berhad achieved the highest-level rating for the 2013 Nestlé in the Society report, which accompanies the Group's Corporate and Financial reports. The report was externally verified by PricewaterhouseCoopers for an A+ rating in accordance with the GRI (Global Reporting Initiative) 3.1 standards for the Food Processing Sector.

This is in line with Nestlé global standards, and consistent with the Company's commitment to creating shared value for both the company and society at large.


For more information, please contact:

Zamira Yasmin Abdul Rahman
Nestlé (Malaysia) Berhad
Tel: (+603) 7965 6212

Rose Dahlan
WestCoast Communications
Tel: (+603) 7954 4505