To Press Releases listPetaling Jaya,Feb 24, 2014
- Turnover of RM1.1 billion in Q4 2013, up by 3.5% from corresponding period in 2012.
- The Full Year 2013 closes with an annual turnover of RM4.8 billion, 5.1% higher than previous year.
- Net profit of RM561.7 million in 2013, 11.2% higher with an underlying margin improvement of 60 bps.
- Final dividend of 175 sen per share will be proposed at the AGM.
Nestlé (Malaysia) Berhad today announced its results for the fourth quarter ending 31 December 2013, which saw continued growth, mainly due to favourable domestic trends albeit slower exports.
Review of performance (Quarter 4, 2013 vs Quarter 4, 2012)
For the fourth quarter ending 31 December 2013, the Group registered a turnover of RM1.1 billion, 3.5% higher than the same period last year.
Continued investments in marketing and promotional activities supported the good domestic growth achieved by many product categories. MAGGI BIG Kari which was launched by the Food business unit was well received and recorded encouraging sales in the fourth quarter. The MILO Fuel for Champions campaign supporting the Malaysian Contingent at the 27th Sea Games in Myanmar was another highlight during this quarter.
The unfavourable trend in export sales was a consequence of the increasingly challenging global economic environment as well as a softening in demand for some export categories specifically for exports to Philippines and Indonesia markets which have invested in local manufacturing capability.
From an input cost perspective, the price trend of commodities consumed by the Group was favourable except for Robusta coffee beans and Milk Powders. The weakening of the Ringgit against the US Dollar combined with the substantial milk powders' price increases, negatively impacted the Gross Profit margin which eroded by 100 bps.
Slightly lower operational expenses for the quarter however, has helped offset the higher input costs. This resulted in the Operating Profit reaching RM129.0 million with a margin improvement of 70 bps.
Profit Before Tax at RM124.4 million was 10.3% higher than prior year. Profit After Tax stood at RM100.5 million, a slight improvement over last year.
Review of performance (Year-to-date, 2013 vs Year-to-date, 2012)
For the year ended 2013, the Group registered a turnover of RM4.8 billion, 5.1% higher than the corresponding period last year. This good performance was driven by domestic sales which showed a strong growth, while exports contracted slightly due to lower demand from affiliate companies.
On the Domestic front, the Group strengthened its marketing and promotional activities to fuel the growth of its products while benefitting from a steady Malaysian economy. The results were very encouraging with several product categories such as Confectionery, Liquid Drinks and Food achieving a robust double digit growth.
The unfavourable trend in export sales was a consequence of the increasingly challenging global economic environment as well as a softening in demand for some export categories specifically for exports to Philippines and Indonesia markets which have invested in local manufacturing capability
From an input cost perspective, the price trend of commodities consumed by the Group was favourable except for Milk Powders which was considerably more expensive in the second half. The weakening of the Ringgit against the US Dollar in the second half was partially mitigated by forward hedging positions. Overall favourable input cost trends combined with higher sales have resulted in higher Gross Profit margin which improved by 140 bps against last year.
While the Group's operating expenses were higher, mostly driven by investments in marketing and promotional activities, the increased sales volumes and an improved gross profit margin helped profit before tax reach RM719.1 million with an underlying margin improvement of 100 bps. Also worth noting is the lower net interest incurred in 2013, the result of an efficient working capital management by the Group. Net profit stood at RM561.7 million and showed a margin improvement of 60 bps.
For more information, please contact:
Zamira Yasmin Abdul Rahman
Nestlé (Malaysia) Berhad
Tel: (+603) 7965 6212