Petaling Jaya, April 26 – Nestlé (Malaysia) Berhad started off the financial year on a high note, recording improved top and bottom line results for its first quarter ended 31 March 2017.
Turnover for the quarter grew by 4.4% to RM1.4 billion compared with RM1.3 billion in the previous year’s corresponding quarter. This was achieved on the back of strong contributions from both domestic and export sales, which achieved good growth of 4.7% and 3.6% respectively.
Alois Hofbauer, Chief Executive Officer of Nestlé (Malaysia) Berhad, said, “We had a good start to the year and delivered solid positive results. Domestic sales were driven by marketing and trade promotions, coupled with a strong base created by new products introduced in the last two years that continue to benefit the Group. Our decision to invest upfront in marketing and trade promotions in the last quarter of 2016 has clearly paid off and led to positive results in this quarter.”
“Further to this, we launched several new product innovations during the quarter under review. This included MAT KOOL Panda, NESCAFÉ GOLD Creamy Latte and Dark Latte, MAGGI Hot Mealz, MAGGI Roasted Sesame Chicken Noodles and KIT KAT Mini. This is part of our continuous innovation and renovation drive to meet the evolving needs of Malaysians.”
The Group’s profit structure remained healthy, supported by internal efficiency initiatives and diligent cost management which helped to mitigate the impact of increased commodity prices and the weaker Ringgit. This enabled the Group to deliver a higher Profit Before Tax of RM291 million reflecting an increase of 5.4% from the previous year’s corresponding quarter, while Profit After Tax grew by 4.4% to RM230 million for the quarter.
Hofbauer added, “Moving forward, higher input costs and consumer confidence levels will remain a challenge in 2017. However, despite the economic vagaries at hand, we are confident that our proven strategy to fuel, innovate and transform to grow will enable us to weather these headwinds.”
“We continue to focus efforts on enhancing efficiencies throughout our supply chain and investing into the success of our brands and innovations, as well as intensifying our trade and consumer promotions. Moreover, we are encouraged by the promising long-term prospects for Malaysia which augur well for our Company,” he said.
“We are driven by our purpose – enhancing quality of life and contributing to a healthier future – through which we create value for our shareholders. Delivering on our purpose, we are committed to offering tastier and healthier food and beverages to nourish healthier and happier Malaysians. This is in line with our promise to deliver Good Food, Good Life to all”, concluded Hofbauer.