Nestlé crosses landmark RM5 billion turnover for FY2016
KUALA LUMPUR: Nestlé (Malaysia) Bhd (Nestle Malaysia) delivered a commendable performance for its financial year ended December 31, 2016 as it crossed the RM5 billion revenue milestone with a turnover of RM5.1 billion in 2016.
According to a press statement from Nestlé, this marked a 4.7 per cent increase from the previous year. Despite challenges in 2016, the group recorded a higher profit after tax of RM637 million, up by 7.9 per cent from the previous year.
“The group continues to be propelled by our long-term FIT strategy, representing the key pillars of ‘Fuel to Grow’, ‘Innovate to Grow’ and ‘ Transform to Grow’.
“This strategy has indeed proven to be effective, as demonstrated by our strong performance for the year,” said Nestlé (Malaysia) Berhad chief executive officer Alois Hofbauer in the statement.
Domestic sales were a key contributor to the group’s performance in FY2016 with 3.3 per cent growth.
This was mainly attributable to product innovations as well as successful marketing and trade promotions, which enabled the group to expand market share in major product categories.
Further to this, savings from favourable commodity prices and improved operational efficiencies in the factories and supply chain were partially reinvested into strong consumer- centric marketing and trade promotions and new product launches.
The export business also demonstrated strong growth, with an increase of 9.6 per cent.
On another note, amongst the innovations introduced in 2016 were the Nescafe Gold Blend Barista Machines, Maggi Oatmee Mi Goreng Kari Flavour, Nestle Omega Plus Milk with Oats, Nestle Bliss Go and Milo frozen confection.
In addition to these, the group implemented innovative business models, including the first Kit Kat Chocolatory boutique in Southeast Asia, as well as tripling our e- Commerce business and launching our flagship first-ever multi-brand e-Commerce wellness store.
As part of the group’s commitment to enhancing value for shareholders, during the annual general meeting the board recommended a final dividend of RM1.30 per share for the financial year ended December 31, 2016.
This brings the total dividend for the financial year 2016 to RM2.70 per share, a record-high for the group.
In the first quarter of 2017, the group kicked off the current financial year on a high note, registering a turnover of RM1.4 billion for its first quarter ended March 31, 2017, reflecting a 4.4 per cent increase from the previous year’s corresponding quarter.
This was driven by improved contributions from both domestic and export sales.
The domestic business experienced robust growth of 4.7 per cent on the back of strong marketing and trade promotions, as well as a solid base created by products introduced in the last two years that continue to benefit the group.
As part of the group’s innovation drive, new product innovations were launched during the quarter under review, namely Mat Kool Panda, Nescafe Gold Creamy Latte and Dark Latte, Maggi Hot Mealz, Maggi Roasted Sesame Chicken Noodles and Kit Kat Mini.
Export sales also delivered a solid performance, recording 3.6 per cent growth for the quarter.