To Press Releases listPetaling Jaya,Apr 26, 2016
- Delivered improved Q1 results driven by robust domestic sales, as well as growth in export.
- Total turnover of RM1.3 billion, up by 2.8% from the previous year’s corresponding quarter.
- Gross profit for the quarter increased by 4.6% to RM521.5 million, while net profit rose by 17.5% to RM220.7 million.
Nestlé (Malaysia) Berhad kicked off its financial year on a high note, with an improved revenue of RM1.3 billion for its first quarter ended 31 March 2016. This represents a 2.8% jump compared with the previous year’s corresponding quarter.
Review of Performance – Quarter 1, 2016 vs. Quarter 1, 2015
Mr Alois Hofbauer, Managing Director, Nestlé (Malaysia) Berhad, said, “We are pleased to have begun the financial year by maintaining our growth momentum. Our performance for the quarter was driven by our strong domestic sales, considering a high base in 2015, and in spite of tough market conditions. This performance was due to the Group’s strong marketing and promotional initiatives, coupled with successful product launches in 2015 which continue to benefit the Group in 2016. Our results were further bolstered by our export business, which has seen steady growth since the second half of 2015 and recorded double digit growth for the quarter under review.”
“We also launched new products during the quarter, namely Nestlé MILO Frozen Confection and Nestlé DRUMSTICK Ice Cream Caffé de Caramel. In addition, as part of our continuous drive towards product innovation and renovation, Nestlé KIT KAT in Malaysia is now produced with 100% sustainable cocoa sourced through the Nestlé Cocoa Plan. We are proud to note that Nestlé KIT KAT is the world’s first global confectionery brand made from 100% sustainable cocoa.”
The Group recorded a higher gross profit for the quarter, which grew by 4.6% to RM521.5 million, supported by the increased turnover and favourable trends in raw material prices, although this was partially offset by higher foreign exchange. The Group’s ongoing diligent cost management also had a positive impact.
Meanwhile, net profit for the period rose to RM220.7 million, an 17.5% increase from the previous year. This was attributable to reduced operating expenses resulting from the timing of marketing investment activities, as well as lower effective tax rate.
Mr Hofbauer added, “The year 2016 is expected to be challenging, both locally and globally, with volatile market conditions, subdued consumer sentiment and heightened competition. Nevertheless, we started on a strong note, and given our resilient nature, we are optimistic that we will be able to weather through this tough economic environment.”
“Malaysia’s positive results also contributed towards a strong regional performance for the first quarter. As a forward-looking Group, we remain focused on our balanced strategy of effective cost management, in tandem with investing for the future of Nestlé by building on our strong foundation in Malaysia and tapping into the country’s vast prospects over the long-term.”
“By staying true to our corporate principles of ‘Doing Well, by Doing Good’ and Creating Shared Value for our stakeholders, we are confident that we will continue to strengthen our position as the world’s leading Nutrition, Health and Wellness Company, and be able to drive the sustainable growth of the Group in 2016,” concluded Mr Hofbauer.
About Nestlé Malaysia
Nestlé, the world’s largest food and beverage manufacturer and a leader in Nutrition, Health and Wellness, is headquartered in Switzerland. Since 1866, Nestlé has been committed to providing high quality, tasty, safe and nutritious products to our consumers, in line with our promise of Good Food, Good Life. Nourishing Malaysians since 1912, Nestlé has earned the trust of our consumers through our quality brands and products, as well as our commitment to improve the lives of the communities in which we operate. At Nestlé, our consumers are at the heart of everything we do. We aim to delight our consumers by offering the best quality products; staying true to our Swiss roots while maintaining our Halal excellence and integrity. 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 5185
Joanne Lim or Yasmin Kadir
Tel: (+603) 7958 8348
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