Petaling Jaya, March 6 – Nestlé (Malaysia) Bhd delivered a better performance for its financial year ended December 31, 2016, by crossing the threshold of RM5 billion in revenue, with a turnover of RM5.1 billion for the year.
This represents a 4.7% increase from RM4.8 billion in the previous year. Domestic sales continued to be a key contributor, achieving 3.3% growth. This was driven by the Group’s continuous product innovations in tandem with successful marketing and trade promotions.
Similarly, the export business showed good growth with an increase of 9.6%, an improvement compared with a flat performance in the previous year.
Gross Profit for the year increased by 7.1% as a result of the higher turnover, favourable commodity prices and stronger operational efficiencies in the factories and supply chain. The Group partially re-invested these savings into stronger marketing and trade promotions as well as new product launches.
Alois Hofbauer, Chief Executive Officer, Nestlé (Malaysia) said, “We are pleased to have achieved a strong performance in 2016 in spite of a challenging market. Our solid strategy enabled us to spur growth during the year. This propelled us forward as we focused on enhancing efficiencies and boosting innovation in response to the needs of our consumers.”
“We are proud to have introduced even more new innovations in 2016, such as our NESCAFÉ Barista machine, MAGGI OatMee Mi Goreng Kari Flavour, OMEGA PLUS Milk with Oats, NESTLÉ BLISS GO and MILO frozen confection, to name a few.”
“We also successfully implemented new innovative business models. We launched the first KIT KAT Chocolatory in Southeast Asia and continued to grow our E-Commerce business. These efforts have collectively enabled us to strengthen our market share in key product categories.”
The Group’s balanced business approach to drive long-term growth enabled it to increase the Operating Profit by 5.1% to RM799 million in 2016. Profit After Tax rose by 7.9% to RM637 million.
As a result of the Group’s strong performance, the Board of Directors proposed a final dividend of RM1.30 per share for the financial year ended Dec 31, 2016. Including the interim dividends paid, this will bring total dividends for the year to RM2.70 per share. This marks a record-high for the Group, representing a payout ratio of 99.4% and an increase of 12.5% from the previous year.