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Solid growth in both domestic and export sales with margin recovery
KEY HIGHLIGHTS
- Turnover grew by 16.9% to RM1.69 billion, supported by solid demand in both domestic and export sales.
- consumption, building on strong seasonal sales through Chinese New Year.
PETALING JAYA, April 26, 2022 – Nestlé (Malaysia) Berhad kicked off the year on a strong note, building further sales momentum for its first quarter ended 31 March 2022, resulting in growth acceleration and margin recovery. Performance was broad based across the brands portfolio, translating also into a margin recovery.
Review of Performance (Quarter 1, 2022 vs Quarter 1, 2021)
Turnover for the quarter under review increased to RM1.69 billion, up 16.9% from RM1.45 billion in the previous year’s corresponding quarter. This was driven by both higher domestic and export sales, growing 14.9% and 25.3% respectively. Strong performance in both the core F&B business and the OOH business under Nestlé Professional has benefitted from the increased mobility and re-opening of Hotel, Restaurant and Café (HORECA) channels post lockdown.
Mr. Juan Aranols, Chief Executive Officer of Nestlé (Malaysia) Berhad said, “As we mark Nestlé’s 110th year in Malaysia, we see solid consumption momentum, supported by our demand generation efforts as well as the solid operational execution by our factories, logistics and sales teams. We remain focused in delivering high-quality, great-tasting and nutritious products that meet the diverse needs of Malaysians, alongside ensuring excellence in consumer communications, digital engagement and in-store activities.”
The Group introduced several exciting new products during the quarter. This included the low fat, low salt MAGGI Nutri-licious Noodles range, certified with the Ministry of Health’s Healthier Choice Logo, as well as NESCAFÉ Tarik Mixes and MAGGI Chicken Marinade Pastes. The Ice Cream segment also saw new launches such as the NESTLÉ Musang King Ice Cream, NESTLÉ Mochi Boba Ice Cream and LA CREMERIA Chocolate Brownie Fudge with Sea Salt. All these products are meeting great initial response across Malaysia.
New and exciting Nestlé products introduced during the quarter.The Group recorded higher Profit Before Tax (PBT) and Profit After Tax (PAT) for the quarter, at RM288.6 million and RM205.2 million respectively. PBT was supported by stronger sales coupled with lower COVID-19 related expenses compared with the same period last year. These improved results were achieved despite the impact of increased commodity prices, as well as the impact of the Cukai Makmur (Prosperity Tax) on PAT.
Mr. Aranols added, “We continued to accelerate our sustainability agenda during the quarter. 100% of our electricity needs come now from the green tariff enabled by the Ministry of Energy and Natural Resources (KeTSA) in Q4 2021. We are building on the positive response to our kerbside collection and recycling programme to expand the initiative to more communities, including Kuala Lumpur through a partnership with Alam Flora Environmental Solutions Sdn Bhd. Additionally, via our Project RELeaf reforestation initiative, we conducted the first tree planting activity with Sime Darby Plantation Berhad, contributing to our goal of planting three million trees by 2023. We are also transitioning many of our (PET) Ready to Drink bottles to recycled PET.”
“Last, but not least, we also recently embarked on a partnership with Universiti Putra Malaysia to spearhead the Putra Community Nutrition Ambassador Programme. Under this one-year programme, we aim to empower 100 mothers to inspire healthier and more sustainable lifestyles among People’s Housing Project (PPR) communities in the Klang Valley.”
2022 Outlook
“We are confident in sustaining growth momentum across the year, even if we see growth levelling down from current high levels in the coming quarters.”
“The global environment remains very challenging, with widespread inflation gaining traction across the world and also in Asia, aggravated by the war in Ukraine impacting further prices and availability of key food commodities such as wheat, barley and sunflower oils.”
“Overall, 2022 is shaping as a year of solid growth in the top line and some pressure on the bottom line as we do our best to balance the tensions on our cost value chain with internal efficiencies and moderate price increases.”
“Despite the foreseeable hurdles, we aim to continue leveraging on all possible opportunities to drive another year of solid and resilient results, whilst making meaningful progress in our ESG agenda to contribute to Malaysia’s sustainable progress,” concluded Mr. Aranols.
About Nestlé Malaysia
Nestlé is the world’s largest food and beverage manufacturer. Headquartered in Switzerland, Nestlé is present in more than 180 countries around the world, and our over 270,000 employees are committed to Nestlé’s purpose of unlocking the power of food to enhance quality of life for everyone, today and for generations to come. Our performance is driven by our Nutrition, Health and Wellness strategy. Nourishing Malaysians since 1912, Nestlé has earned the trust of our consumers through our quality brands and products. We are committed to improving the lives of the communities in which we operate, 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/Nestle.Malaysia.
For more information, please contact:
Shaheen Zaffar
Nestlé (Malaysia) Berhad
Tel: (+603) 7965 6456
E-mail: [email protected]
Farah Iman or Yasmin Kadir
acorn communications
Tel: (+603) 7958 8348
E-mail: [email protected]