To Press Releases listKuala Lumpur,Apr 26, 2018
- Delivered excellent top and bottom line results for FY2017, driven by strong domestic and export businesses.
- Higher Turnover of RM5.3 billion and Profit after Tax of RM646 million.
- Proposed final dividend of RM1.35 per share at the Annual General Meeting.
- Nestlé commits to driving healthier lifestyles to over 5 million Malaysians in 2018.
Nestlé (Malaysia) Berhad turned in a strong performance for its financial year ended 31 December 2017, registering improved top and bottom-line results. The Group recorded a Turnover of RM5.3 billion, up by 3.9% compared with the previous financial year. In addition, the Group recorded a Profit before Tax (PBT) of RM814 million and Profit after Tax (PAT) of RM646 million, an increase of 6.2% and 1.4% respectively.
Mr. Alois Hofbauer, Chief Executive Officer of Nestlé (Malaysia) Berhad, commented after the Group’s Annual General Meeting: “This performance is all the more impressive given the challenging operating environment. We are pleased that our focus on delivering high-quality and healthier products has borne fruit. Without a doubt, Nestlé Malaysia’s continued commitment towards investing into our brands, innovation and focus on operational efficiency under our “Fuel, Innovate and Transform to Grow” strategy drives our business success and contributes to the sustainable and profitable development of the Group. This enables us to deliver consistent improvements year-on-year.”
“Nestlé has always been there for Malaysians and we are committed to continue growing with the nation. That is why this year, we will be driving more active and healthier lifestyles to over 5 million Malaysians,” concluded Hofbauer.
The Group’s performance was driven by robust domestic and export sales, which increased by 4.1% and 3.0% respectively. This growth was propelled by strategic investments into campaigns such as the Kuala Lumpur SEA Games 2017 and MILO Breakfast Day which promoted good breakfast habits and active lifestyles, along with campaigns such as Nestlé OMEGA PLUS’ ‘Stop The Count’ which raised awareness on heart health. In tandem with this, prudent cost management and effective marketing and trade investments also contributed to the Group’s improved results.
In addition, Nestlé’s ongoing product innovation and renovation drive continued to bear fruit, with new product launches during the year supporting turnover growth. In line with Nestlé’s purpose of enhancing quality of life and contributing to a healthier future, key products introduced in 2017 included MILO Nutri-Up, enriched with high calcium and added protein, as well as NESTUM Cereal with Milk in a bottle, which contains a nutritious blend of multigrains.
As a reflection of the Group’s commitment to enhancing value for shareholders, during the Annual General Meeting the Board recommended a final dividend of RM1.35 per share for the financial year ended 31 December 2017. This brings the total dividend for the financial year 2017 to RM2.75 per share, another record-high for the Group.
Turnover for the quarter under review improved to RM1.43 billion, a 4.2% increase compared with the previous year’s corresponding quarter. This was driven by strong domestic and export sales.
The Group’s positive results were also bolstered by strategic marketing and promotional activities during the Chinese New Year period in the quarter under review. Profit Before Tax came in at RM295 million, a 1.3% jump and Operating Profit increased by 1.4% to RM303 million. The improved Turnover also compensated for the less favourable commodity prices and higher marketing investments during the Chinese New Year period.
Mr. Hofbauer added, “Whilst we anticipate a challenging year ahead, we are confident that we are well prepared with our strong portfolio of some of Malaysia’s most loved brands, our highly-capable and committed Nestlé team and an innovative spirit second to none in the industry. Given the firm fundamentals of this nation, we are optimistic on the solid prospects for Nestlé in the Malaysian market.”
About Nestlé Malaysia
Nestlé is the world’s largest food and beverage manufacturer. Headquartered in Switzerland, Nestlé is present in 189 countries around the world, and our 328,000 employees are committed to Nestlé’s purpose of enhancing quality of life and contributing to a healthier future. Our performance is driven by our Nutrition, Health and Wellness strategy. Since 1912, we have been nourishing Malaysians through our quality brands and products, whilst maintaining our Halal excellence and integrity. This is in line with our promise of delivering GOOD FOOD, GOOD LIFE to all. To learn more about how we have been nourishing Malaysians for over a century, do visit www.nestle.com.my or our Facebook page at http://www.facebook.com/NestleMalaysia
For more information, please contact:
Nestlé (Malaysia) Berhad
Tel: (+603) 7965 6650
Joanne Lim or Yasmin Kadir
Tel: (+603) 7958 8348
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