Nestlé (Malaysia) Berhad 29th Annual General Meeting

To Press Releases listPetaling Jaya,May 29, 2013

Key highlights - Financial year ended 31st December 2012

  • The Full Year 2012 closes with an annual turnover of RM4.6 billion registering a 7.3% growth from the previous corresponding period.
  • Profit before tax reached RM637.7 million with an underlying margin improvement of 80 bps, while Net profit stood at RM505.4 million and showed a margin improvement of 100 bps.
  • Final dividend of 155 sen per share will be proposed at the AGM.
Petaling Jaya, 2 May 2013 – Nestlé (Malaysia) Berhad closed the Financial Year Ended 31 December 2012 with a turnover of RM4.6 billion. This is a 7.3% growth from the previous corresponding period, despite a slow down in export activities due to lower demand from some export markets.

The growth was predominantly driven by strong Domestic demand, contributed by the marketing and promotional activities carried out in conjunction with Nestlé 100 Years Celebration and from the local economic performance.

The response from consumers was very positive and resulted in strong demand for Nestlé products. Fast growing categories within the Group's portfolio namely, Confectionery, Liquid Drinks, Chilled Dairy and Ice Cream, performed particularly well.

Following continuous product innovation and renovation, Nestlé introduced a selection of new and exciting product variants, such as NESCAFÉ 3in1 Brown and Creamy, new MILO mixes variants (MILO Less Sweet, MILO Hi-Fibre, MILO Cereal), the new MAGGI MI Goreng and two additional NESTUM 3in1 variants with Chinese herbs. These products were well received by consumers.

During the year under review, prices of major raw materials consumed by the Group stabilised in the second half but remained at a high level. However, when combined with the Group's internal cost savings initiative - Nestlé Continuous Excellence program - the gross profit margin improved by 150 bps against the same period last year.

From a bottom line perspective, Profit before tax reached RM637.7 million with an underlying margin improvement of 80 bps. This was made possible thanks to the higher sales volume supported by marketing investments, combined with the improved gross profit margin.

Net profit stood at RM505.4 million with a margin improvement of 100 bps. To note were the lower financing cost driven by good working capital management across inventories, receivables and payables.

In view of the commendable performance during the 2012 financial year, the Board of Directors proposed to declare a single-tier final dividend of 155 sen per share, subject to the approval from shareholders at the Annual General Meeting.

Outlook for 2013

2013 is expected to be another challenging year for the Group with the global economy still facing many uncertainties. The Malaysian economy, however, is expected to remain resilient which augurs well for the domestic market.

The Group is in a good position to capitalise on the favourable conditions through the continued innovation and renovation of 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.

Our commitment to Creating Shared Value

Nestlé (Malaysia) Berhad achieved the highest level rating for the 2012 Creating Shared Value (CSV) report, which accompanies the Group’s Corporate and Financial reports. The report was externally verified by Bureau Veritas Certification for an A+ rating in accordance with the GRI (Global Reporting Initiative) 3.0 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

Tunku Putri Nur Asma Tunku Jaafar / Rose Azrin Dahlan
WestCoast Public Relations
Tel: (+603) 7954 4505