Kuala Lumpur, April 28 – Nestlé (Malaysia) Bhd delivered a commendable performance for its financial year ended 31 December 2016. The Group also crossed the RM5 billion Revenue milestone with a Turnover of RM5.1 billion in 2016. This marked a 4.7% increase from the previous year. Despite challenges in 2016, the Group recorded a higher Profit After Tax of RM637 million, up by 7.9% from the previous year.
Alois Hofbauer, Chief Executive Officer of Nestlé (Malaysia) Berhad, commented after the Group’s Annual General Meeting: “The Group continues to be propelled by our long-term FIT strategy, representing the key pillars of ‘Fuel to Grow’, ‘Innovate to Grow’ and ‘Transform to Grow’. This strategy has indeed proven to be effective, as demonstrated by our strong performance for the year.”
Domestic sales were a key contributor to the Group’s performance in FY2016 with 3.3% growth. This was mainly attributable to product innovations as well as successful marketing and trade promotions, which enabled the Group to expand market share in major product categories. Further to this, savings from favourable commodity prices and improved operational efficiencies in the factories and supply chain were partially reinvested into strong consumer-centric marketing and trade promotions and new product launches. The export business also demonstrated strong growth, with an increase of 9.6%.
Amongst the innovations introduced in 2016 were the NESCAFÉ Gold Blend Barista Machines, MAGGI OATMEE Mi Goreng Kari Flavour, NESTLÉ OMEGA PLUS Milk with Oats, NESTLÉ BLISS GO and MILO frozen confection. In addition to these, the Group implemented innovative business models, including the first KIT KAT Chocolatory boutique in Southeast Asia, as well as tripling our e-Commerce business and launching our flagship first-ever multi-brand e-Commerce wellness store.
As part of the Group’s commitment to enhancing value for shareholders, during the Annual General Meeting the Board recommended a final dividend of RM1.30 per share for the financial year ended 31 December 2016. This brings the total dividend for the financial year 2016 to RM2.70 per share, a record-high for the Group.
Hofbauer said, “Although market conditions are expected to remain challenging in 2017, we are confident that our resilient foundation will enable the Group to continue delivering results. This is propelled by our strategy to Fuel, Innovate and Transform to Grow.”
“We continue to be 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 Mr. Hofbauer.