PETALING JAYA: Nestle (Malaysia) Bhd’s net profit doubled to RM133.54 million in the fourth quarter ended December 31, 2017 from RM66.94 million in the corresponding period the previous year.
Its quarterly revenue, meanwhile, rose 2.4 per cent year-on-year to RM1.28 billion from RM1.25 billion in 2016. Full-year turnover improved to RM5.26 billion, a 3.9 per cent increase from the year before.
This solid growth was driven by strong domestic and export performance, which grew at 4.1 per cent and 3.0 per cent respectively.
Its chief executive officer Alois Hofbauer said the group’s main focus has been on producing high quality products that Malaysians value, and encouraging healthier lifestyles.
“The Group’s solid performance has been achieved on the back of strategic investments into campaigns including the Kuala Lumpur SEA Games 2017 and MILO Breakfast Day which inculcates good breakfast habits and active lifestyles, as well as campaigns such as Nestlé OMEGA PLUS’ “Stop The Count” campaigns that promote better heart health awareness,” he said in a statement.
Hofbauer said Nestlé’s continuous focus on innovation and renovation has also been key in contributing to the positive results, with new and exciting products contributing to turnover growth.
“In the year under review, we successfully launched new products including MILO Nutri-up, a high calcium product that provides a good source of protein, as well as NESTUM Cereal with Milk in a bottle, which contains multigrains,” he added.
Driven by prudent cost management and effective marketing and trade investments, the Group turned in a full-year profit before tax (PBT) of RM814 million and profit after tax (PAT) of RM646 million, an increase of 6.2 per cent and 1.4 per cent respectively. This enabled the Group to compensate for a one-time favourable tax-effect in 2016.
The Board of Directors proposed a final dividend of RM1.35 per share for the financial year ended 31 December 2017.
Including the interim dividends paid, this will bring total dividends for the year to RM2.75 per share.
“Moving forward, we will remain guided by Nestlé’s purpose of enhancing the quality of life and contributing to healthier future for all. We will continue to focus on delivering high quality products at greater value to Malaysians.
“Whilst 2018 will continue to be challenging, we will work towards ensuring our company’s sustainable growth through our focus on continuous efficiency increases throughout our supply chain, while reinvesting the realised savings into future growth,” said Hofbauer.