Nestlé Maintains Positive Growth Momentum

To Press Releases listPetaling Jaya,Aug 14, 2018


  • Turnover up by 3.1% to RM2.74 billion in the first half of 2018, driven by domestic sales and export business.
  • Domestic growth driven by strong festive sales during the first half of 2018.
  • Improved Operating Profit at RM527 million in the first half of 2018.
  • Declared net interim dividend of RM0.70 per share.
  • Opened the state-of-the-art and biggest Nestlé National Distribution Centre in Asia.

Nestlé (Malaysia) Berhad maintained its positive growth momentum, delivering an improved performance for the first six months of its financial year ended 30 June 2018.

Review of performance: Year-to-date 2018 vs Year-to-date 2017

For its first half ended 30 June 2018, the Group recorded a Turnover of RM2.74 billion, up by 3.1% from the previous year’s corresponding period.

Mr Alois Hofbauer, Chief Executive Officer of Nestlé (Malaysia) Berhad, said, “This improved performance was underpinned by higher domestic sales especially during the festive seasons, as well as growth in our export business.”

“We continued to deliver strong innovation, including MAGGI Pedas Giler as well as the new KIT KAT Green Tea, NESTUM Kurma & Prun and the opening of our NESPRESSO Boutique in the Gardens Mall, Mid Valley City. These new products and business models have enabled us to set a solid base for growth in the second half of the year,” he continued.

“In line with our long-term strategy to ‘Fuel the Growth’, we are also confident that our investments, including the new Nestlé National Distribution Centre (NDC), which is Nestlé’s largest in Asia, will enable us to maintain our solid growth momentum,” said Mr Hofbauer.

The Group’s positive performance saw Gross Profit increase to RM1.06 billion and Operating Profit improve to RM527 million. This was achieved despite one-off expenses incurred from the Group’s investment in its new NDC, which is expected to contribute towards future growth. Profit After Tax rose to RM397 million, reflecting a satisfactory bottom line performance considering that the first half of the previous financial year was already on a high base.

As part of the Group’s commitment to enhancing shareholder value, the Board declared a net interim dividend of RM0.70 per share for the financial year ending 31 December 2018.

Review of performance: Quarter 2, 2018 vs Quarter 2, 2017

For its second quarter ended 30 June 2018, the Group posted a higher Turnover of RM1.31 billion. This marks a 2% increase from RM1.28 billion in the same quarter last year.

According to Mr Hofbauer, “The launch of new products and strong consumer and trade promotions were key contributors to our revenue growth. This was further supported by increased sales in June.”

“During the quarter under review, we also commenced operations in our new NDC, the biggest for Nestlé in Asia. This move from the existing distribution centre to the new NDC has resulted in a shift of sales from June (Q2) to July (Q3) because of the required and planned ramp-up of operations in the new distribution centre. We are confident that the new state-of-the-art distribution centre with its larger capacity will support the expansion of our business and meet growing consumer demand as well as support accelerated growth in the years ahead.”

The absolute Gross Profit for the quarter increased to RM496 million. There was a slight increase in Operating Expenses mainly due to the start-up costs for the new distribution centre. Despite this, Profit Before Tax grew to RM214 million while Profit After Tax came in at RM166 million.


“Against the backdrop of a more encouraging year for the Malaysian economy, we are confident that our investments, innovation drive and strong brand portfolio will enable us to maintain our solid growth momentum. In tandem, we will continuously work on improving efficiencies across our supply chain and reinvest savings to deliver sustainable and profitable 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 or our Facebook page at

For more information, please contact:

Maxine Lim
Nestlé (Malaysia) Berhad
Tel: (+603) 7965 6650

Joanne Lim or Yasmin Kadir
acorn communications
Tel: (+603) 7958 8348

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