Nestlé Resilient in Tough Times

To Press Releases listPetaling Jaya,Oct 22, 2015

Nestlé Resilient in Tough Times
  • Increased Turnover in Q3 driven by the success of new product launches, as well as the Nestlé ‘Lagi Sihat, Lagi Happy’ consumer campaign.
  • Operating profit of RM632 million in the first nine months of 2015, up by 5.3% from the previous year’s corresponding period.
  • Declared a Second Net Interim dividend of RM0.65 per share for the first time.

Nestlé (Malaysia) Berhad registered an increased Turnover of 5.3% to RM1.2 billion for its third quarter ended 30 September 2015 compared to the corresponding period last year, in spite of weak consumer sentiments. The increase was driven by growth in domestic sales led by new product launches, and the successful ‘Lagi Sihat, Lagi Happy’ consumer campaign, as well as improvements in our export business.

Review of performance: Quarter 3, 2015 vs Quarter 3, 2014

For its third quarter ended 30 September 2015, the Group delivered an increased Turnover of RM1.2 billion, up by 5.3% from the previous year’s corresponding quarter.

Mr Alois Hofbauer, Managing Director, Nestlé (Malaysia) Berhad, said, “Despite tough market conditions, our domestic and export businesses saw substantial growth during the quarter under review. In the domestic market, our new product launches and our successful Nestlé ‘Lagi Sihat, Lagi Happy’ consumer campaign, along with other marketing and promotional activities, were core contributors in driving sales in spite of soft consumer sentiment.”

The Group registered a higher Gross Profit of RM461.5 million for the third quarter, representing a 8.6% increase compared with RM425.0 million in the corresponding quarter last year. This good profit development was mainly attributable to increased Turnover, favourable raw material trends, as well as diligent cost management throughout the value chain. On the back of improved cost of sales and lower tax expenses, the Group recorded a Net Profit of RM179.2 million, a 19.4% increase from the same quarter last year.

Review of performance: Year-to-date, Sept 2015 vs Year-to-date, Sept 2014

For its first nine months, the Group recorded an Operating Profit of RM632 million, 5.3% higher than the previous year’s corresponding period. Meanwhile, Net Profit increased by 8.6% to RM490.9 million.

Mr Hofbauer commented, “We are pleased to have delivered these results amidst a challenging economic backdrop. The improved profit is mainly attributable to lower cost of commodities, coupled with the Group’s proactive and sustainable cost management along the value chain. By re-investing these savings into trade and consumer promotions, the Group was able to strengthen market position for our brands.”

“New product innovations also continue to be key business drivers, contributing to the overall turnover development. Key products recently launched are MILO Nutri G, KIT KAT Green Tea, NESCAFÉ Mountain Wash, MAGGI Letup range, as well as the latest additions to the MAGGI Royale premium range, Sarawak Sambal Laksa and Johor Seafood Laksa.”

These new product developments, coupled with consumer promotions, helped drive recovery in Q3 despite weak consumer sentiment, bringing the Group’s year-to-date Turnover to RM3.6 billion.

In line with the Group’s commitment to enhancing shareholder value, the Board for the first time, declared a Second Net Interim Dividend of RM0.65 per share for the financial year ending 31 December 2015.


“Given the demanding economic climate of reduced consumer confidence and challenged disposable income levels, we have adopted a cautious approach for the short-term. However, we are optimistic on the middle to long-term growth in the country. Malaysia is one of the top five Nestlé markets in Asia, and is among the top 20 Nestlé markets in the world. We have great consumer base potential in the future,” said Mr Hofbauer.

He added, “To this end, we are committed to maintaining our balanced business strategy of prudent cost management coupled with investments for the future. Over the past seven years, we have invested over RM1.5 billion into expanding our manufacturing capabilities. The upcoming launch of our eighth factory in the country, the Sri Muda Factory this week, reflects our continued commitment and drive towards growing our business in Malaysia.”

“Moving forward, we are focused on expanding our manufacturing capacity as well as developing the capabilities of our talent pool. We will also continue to intensify our marketing investments and product innovation efforts, providing consumers with high quality, nutritious, great tasting products in line with our values as the 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
Mobile: +6012-353 1337

Joanne Lim or Yasmin Kadir
acorn communications
Tel: (+603) 7958 8348
Mobile: +6012-353 1337 (Joanne), +6017-237 9048 (Yasmin)

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