Nestlé Delivers Positive Q1 Results Driven By Domestic Market

To Press Releases listPetaling Jaya,Apr 20, 2015

  • Increase in domestic turnover of 4.1%, driven by launch of new products as well as the successful “Lebih Nilai, Lagi Hebat” consumer promotional campaign.
  • Total turnover of RM1.3 billion, a 0.4% increase from the previous year’s corresponding quarter.
  • Operating profit for the quarter increased by 3.1%, while net profit rose by 2.4% to RM187.9 million compared to the previous corresponding period.

Nestlé (Malaysia) Berhad delivered a solid performance for the current financial year’s first quarter ended 31 March 2015, with a turnover of RM1.3 billion, a 0.4% increase compared with the previous year’s corresponding quarter.

Mr. Alois Hofbauer, Managing Director, Nestlé (Malaysia) Berhad, said, “We are heartened to see that in spite of the overall subdued consumer sentiment, Nestlé (Malaysia) Berhad recorded stable growth. A key driver was the “Lebih Nilai, Lagi Hebat” nationwide promotional campaign launched at the end of February, which delivered solid growth for key product categories. The campaign was a proactive step to assure Nestlé consumers that they would continue receiving greater value for money for their favourite products, in response to uncertainty over price movements prior to the implementation of the Goods and Services Tax (GST).”

“During the quarter, the Group successfully launched new products including NESCAFÉ BLEND & BREW, KIT KAT RUBIES and MAT KOOL BUTTERFLY, which have been well-received by the market.”

Growth for the quarter was moderated by export sales, which continued to see a slowdown as a result of lower demand from affiliate companies. Nevertheless, the impact of the decline was lower than in the preceding quarter, indicating signs of stabilisation.

Furthermore, commodity prices during the quarter under review were more favourable overall compared with the corresponding quarter of the previous financial year, with the exception of palm oil and coffee beans. Although the depreciation of the Ringgit against the US Dollar continued to have an impact, the favourable commodity trends coupled with higher operational efficiency led to a 5.3% increase in gross profit, translating to an underlying margin improvement.

The Group also increased its investment in marketing and promotional activities, which resulted in market share growth. Higher turnover with improved margins resulted in a higher operating profit of RM250.9 million, up by 3.1% from last year’s corresponding quarter, while net profit was RM187.9 million, reflecting a 2.4% increase, owing to higher interest expenses.

Outlook on 2015

Mr. Hofbauer added, “We are pleased to have started the financial year on a solid note, in spite of tough market conditions. The year ahead is expected to be challenging, particularly as consumer demand is impacted by the GST, which will require a period of adjustment before consumer demand normalises. However, building on the strength of the Malaysian economy, we remain cautiously optimistic on long-term prospects, and we are focused on our strategic plans to grow our top and bottom line while expanding our manufacturing capacity.”

“To this end, our new Sri Muda Factory in Shah Alam is now complete and is on track to be fully operational by August 2015, which will certainly open up new opportunities for the Group.”

“Moving forward, we will continue to scale up our marketing investments and promote healthy lifestyles amongst Malaysians via our innovative product portfolio. One of the exciting new products which we have just launched is the MILO Nutri G, which contains whole grains from brown rice, wheat, oat and barley, and serves as breakfast on the go. This offering, amongst many others, is in line with Nestlé’s objective to be a leader in Nutrition, Health and Wellness,” concluded Mr. Hofbauer.

About Nestlé Malaysia

Nestlé, the world’s largest food and beverage manufacturer and a leader in Nutrition, Health and Wellness, is headquartered in Switzerland. Since 1866, Nestlé has been committed to providing high quality, tasty, safe and nutritious products to our consumers, in line with our promise of Good Food, Good Life. Nourishing Malaysians since 1912, Nestlé has earned the trust of our consumers through our quality brands and products, as well as our commitment to improve the lives of the communities in which we operate. At Nestlé, our consumers are at the heart of everything we do. We aim to delight our consumers by offering the best quality products; staying true to our Swiss roots while maintaining our Halal excellence and integrity. To learn more about how we have been nourishing Malaysians for over a century, do visit or our Facebook page at

For more information, please contact:

Maxine Lim
Nestlé (Malaysia) Berhad
Tel: (+603) 7965 5185

Michelle Vincent or Yasmin Kadir
acorn communications
Tel: (+603) 7958 8348

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