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Nestle net profit doubles to record high


Hofbauer: We will continue to focus on delivering high quality products at greater value to Malaysians."

Hofbauer: We will continue to focus on delivering high quality products at greater value to Malaysians."

PETALING JAYA: Nestle (M) Bhd ’s net profit for the fourth quarter ended Dec 31, 2017 doubled to a record high of RM133.54mil from RM66.94mil a year earlier.

This was driven by improvement in its supply chain efficiency, product portfolio and promotion activities.

Revenue for the quarter increased 2.5% to RM1.28bil compared to RM1.25bil previously.

Its profit margin for the quarter improved to 10.4% compared to 5.6% in the same quarter a year ago.

The improved performance boosted Nestle’s earnings per share in the fourth quarter to 56.95 sen from 28.55 sen a year earlier.

In a filing with Bursa Malaysia, Nestle also announced a higher dividend payout of RM1.35 a share for the fourth quarter, which would bring total dividends for the year to RM2.75 per share.

Nestle said the solid performance in the fourth quarter was driven by domestic sales, which grew by 4.5%, and offsetted the slowdown in export sales.

The group delivered solid growth during the quarter under review. Domestic sales grew by 4.5% on the back of innovation and renovation initiatives, as well as successful marketing and trade promotions.

Nestle views 2018 to be another challenging year for the consumer product group and it will be focusing on increasing supply chain while reinvesting realised savings for future growth.

The company said it would continue with its “Fuel the Growth” strategy, which boosted its fourth quarter earnings.

“Moving forward, we will remain guided by Nestle’s purpose of enhancing the quality of life and contributing to a healthier future for all.

“We will continue to focus on delivering high quality products at greater value to Malaysians,” said Nestle Malaysia chief executive officer Alois Hofbauer in a statement.

Cumulatively, for the full year of 2017, Nestle posted a 1.4% increase in net profit to RM645.8mil from RM637.13mil a year earlier.

Revenue for the period jumped to RM5.26bil from RM5.06bil previously.

“Our main focus has always been on producing high-quality products that Malaysians value, and in encouraging healthier lifestyles.

“The group’s solid performance has been achieved on the back of strategic investments in campaigns, including the Kuala Lumpur SEA Games 2017 and MILO Breakfast Day, as well as campaigns such as Nestle OMEGA PLUS’ ‘Stop The Count’ that promotes better heart health awareness,” said Hofbauer.

Shares in Nestle closed RM1.10 higher to RM121.50, making it the top gainer on the local bourse yesterday. Its share price has increased more than 65% year-on-year.

Corporate News , Retail , Nestle

   

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