Nestlé Delivers Solid Growth for FY2017

To Press Releases listPetaling Jaya,Feb 20, 2018

KEY HIGHLIGHTS

  • Delivered higher revenue of RM5.3 billion, a 3.9% increase compared to the previous year.
  • This was supported by strong export and domestic businesses, which grew 3.0% and 4.1 % respectively.
  • Due to prudent cost management and effective marketing and trade investments, the Group recorded a higher Profit before Tax of RM814 million and Profit after Tax of RM646 million, an increase of 6.2 % and 1.4 % respectively for the financial year ended 31 December 2017.
  • Proposed final dividend of RM1.35 per share, bringing total dividends for the year to RM2.75 per share.

Nestlé (Malaysia) Berhad once again delivered a strong performance for its financial year ended 31 December 2017, recording improved top and bottom-line results.

Review of performance: Year-to-date, 2017 vs Year-to-date, 2016

The Group registered an improved turnover of RM5.3 billion, reflecting a 3.9% increase compared with the previous year. This solid growth was driven by strong domestic and export performance, which grew at 4.1% and 3.0% respectively.

According to Mr. Alois Hofbauer, Chief Executive Officer, Nestlé (Malaysia) Berhad, “Our main focus has always been on producing high quality products that Malaysians value, and in encouraging healthier lifestyles. The Group’s solid performance has been achieved on the back of strategic investments into campaigns including the Kuala Lumpur SEA Games 2017 and MILO Breakfast Day which inculcates good breakfast habits and active lifestyles, as well as campaigns such as Nestlé OMEGA PLUS’ “Stop The Count” campaigns that promote better heart health awareness.”

“Nestlé’s continuous focus on innovation and renovation has also been key in contributing to these positive results, with new and exciting products contributing to our turnover growth. In the year under review, we successfully launched new products including MILO Nutri-up, a high calcium product that provides a good source of protein, as well as NESTUM Cereal with Milk in a bottle, which contains multigrains.”

As a result of prudent cost management and effective marketing and trade investments, the Group turned in 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. This enabled the Group to compensate for a one-time favourable tax-effect in 2016.

In tandem with the Group’s strong results, the Board of Directors proposed a final dividend of RM1.35 per share for the financial year ended 31 December 2017. Including the interim dividends paid, this will bring total dividends for the year to RM2.75 per share.

Review of performance: Quarter 4, 2017 vs Quarter 4, 2016

For its fourth quarter ended 31 December 2017, Group recorded an increase in revenue from RM1.25 billion to RM1.28 billion, marking a 2.5% jump compared with the same quarter last year.

The Group delivered solid growth during the quarter under review. Domestic sales grew by 4.5% on the back of innovation and renovation initiatives as well as successful marketing and trade promotions.

The steady domestic sales offset the moderate slowdown in export sales, which saw a contraction of 3.2% against the previous year’s corresponding quarter. This was mainly due to the later phasing of export market orders due to the timing of Chinese New Year in 2018.

Driven by the Group’s focus on sustainable cost management and strategic marketing investments, Profit Before Tax for the quarter doubled to RM166 million from RM81 million in the same period last year. In the year under review, investments were well spread over the four quarters, compared with the previous year which saw exceptionally high marketing spend in the last quarter due to the early Chinese New Year.

Prospects

According to Mr. Hofbauer, “Moving forward, we will remain guided by Nestlé’s purpose of enhancing the quality of life and contributing to healthier future for all. We will continue to focus on delivering high quality products at greater value to Malaysians.

“Whilst 2018 will continue to be challenging, we will work towards ensuring our Company’s sustainable growth through our focus on continuous efficiency increases throughout our supply chain, while reinvesting the realised savings into future growth,” concluded Mr. Hofbauer.



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:

Maxine Lim
Nestlé (Malaysia) Berhad
Tel: (+603) 7965 6650
Email: Maxine.Lim@my.nestle.com

Joanne Lim or Yasmin Kadir
acorn communications
Tel: (+603) 7958 8348
Email: acorncommunications@acornco.com.my




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