KUALA LUMPUR: Robust domestic sales and continued focus on demand generation have excelled Nestlé (Malaysia) Bhd’s results for the year ended December 31 2019.
Nestle Malaysia’s net profit grew 2.1 per cent to RM672.91 million from RM658.88 million, while revenue eased to RM5.518 billion from RM5.519 billion.
"Our solid performance in Malaysia was supported by strong operational sales execution, leveraging market trends and a sustained stream of innovations throughout the year, many of which are resonating well with our consumers," Nestlé Malaysia chief executive officer Juan Aranols said.
For the fourth quarter (Q4), its net profit grew 6.5 per cent to RM131.82 million from RM123.82 million recorded in the same quarter in 2018.
Nestlé Malaysia said the improved net profit for Q4 was mainly due to positive domestic sales, efficiencies and savings while overcoming expected external headwinds.
Revenue in the same quarter, however, eased marginally to RM1.33 billion from RM1.35 billion, impacted by subdued export demand against the backdrop of regional and global uncertainties.
The company said domestic sales grew 2.8 per cent in Q4, net of the chilled dairy divestment.
Aranols said the growth in the quarter is noteworthy in light of tough market conditions during the quarter.
"I am proud of the efforts deployed by our teams to harness all opportunities in search of growth. We also introduced new products that have resonated well with consumers, such as MILO Nutri Pluz, MAGGI Pazzta, KIT KAT Mandarin Orange and KIT KAT Stick Ice Cream, to name a few,” he said in a statement.
He said the results reflect solid foundations of Nestlé Malaysia and efforts deployed to continue delivering strong results in spite of a difficult environment.
"Our local sales growth is ahead of the market growth and confirms that our brands remain highly relevant and present in the life of Malaysians.
Nestle Malaysia proposed a final dividend of RM1.40 per share for the financial year.
This will bring total dividends for the year to RM2.80 per share, on par with the record-high dividends paid out in the previous year.
Nestlé Malaysia said the company will continue to be focused on driving strong growth momentum, nurturing its brands and building capabilities to continue delivering sustainable and profitable growth.
“There will be pressure from external factors, including commodity prices or any of the several crises that the world is confronting in this early part of the year.
“But we remain optimistic that with our strong fundamentals and our focus on consumer-driven commercial activities, we are well-positioned to achieve continued growth in 2020,” said Aranols.