2013 Nestle Q4 2012 Media Release En

7/29/2019 2013 Nestle Q4 2012 Media Release En

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Press Release

For Immediate Release

100th YEAR ANNIVERSARY CELEBRATIONS SPURSTRONG DOMESTIC GROWTH FOR NESTL IN 2012

KEY HIGHLIGHTS

Turnover of RM1.1 billion in Q4 2012, up by 2.5% from corresponding period in

2011, coupled with improvement in Net Profit.

The Full Year 2012 closes with an annual turnover of RM4.6 billion and a netprofit of RM505.4 million with an underlying margin improvement of 100 bps.

Final dividend of 155 sen per share will be proposed at the AGM.

Petaling Jaya, 21 February 2013 -Nestl (Malaysia) Berhad today announced

its results for the fourth quarter ending 31 December 2012, which saw it continuing

on the growth momentum established during the previous three quarters.

Review of performance (Quarter 4, 2012)

During the quarter, the Group registered a turnover of RM1.1 billion, reflecting a

2.5% growth compared to the corresponding period in 2011.

The good performance was largely driven by Domestic growth, fueled by the Group

investments in marketing and promotional activities as well as by positive consumer

sentiments. Exports, however, recorded a slow down as softer demand from certain

markets led to lower turnover for the quarter.

An easing in the price of commodities during the quarter resulted in an improved

gross margin, while higher investments in marketing and promotional activities

further strengthened brand equity, and positively impacted sales.

NESTL (MALAYSIA) BERHAD(Company No. 110925-W)

GROUP CORPORATE AFFAIRS22-1, 22ND FLOOR, MENARA SURIAN, NO.1 JALAN PJU 7/3, MUTIARA DAMANSARA

47810 PETALING JAYA, SELANGOR, MALAYSIATEL: 03-7965 6000 FAX: 03-7965 6767 Website: www.nestle.com.my


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Nestl (Malaysia) BerhadMedia Release Nestl Q4 2012 Results

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Consequently, the Group achieved Profit before tax of RM112.9 million with an

underlying margin improvement of 80 bps. Of note were the lower financing cost

driven by good working capital management. The Net Profit stood at RM99.5 million

reflecting a margin improvement of 200 bps, supported by a lower tax expense

driven by tax benefits linked to higher capital investments in the quarter.

Review of performance (Full year 2012)

The Group closed the financial year with a turnover of RM4.6 billion, registering a

7.3% growth from the previous corresponding period despite a slow down in Export

activities due to lower demand from some export markets.

The growth was driven by strong Domestic demand benefitting from the marketing

and promotional activities initiated in conjunction with Nestl celebrating its 100 th

year in Malaysia and from the local economic performance. The response from

consumers was very positive and resulted in strong demand for Nestl products.

Encouraging performance was particularly noted in the fast growing categories within

the Group's portfolio namely, Confectionery, Liquid Drinks, Chilled Dairy and Ice

Cream.

The Group was also active in renovating and innovating its product range, and the

year saw the introduction of new product variants, which included NESCAF 3 in 1

Brown and Creamy, new MILO mixes variants (MILO Less Sweet, MILO Hi-Fibre,

MILO Cereal), the new MAGGI MI Goreng and two additional NESTUM 3 in 1

variants with Chinese herbs. All the new products were well received by the market.

From an input cost perspective, prices of major raw materials consumed by the

Group stabilised in the second half but remained at a high level. Combined with the

Group's internal cost savings initiatives under the umbrella of the Nestl Continuous

Excellence program, the gross profit margin improved by 150 bps against the same

period last year.


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Higher sales volume supported by marketing investments, combined with the

improved gross profit margin helped profit before tax reach RM637.7 million with an

underlying margin improvement of 80 bps. Net profit stood at RM505.4 million and

showed a margin improvement of 100 bps. To note were the lower financing cost

driven by good working capital management across inventories, receivables and

payables.

With the Groups commendable performance during the financial year, the Board of

Directors has proposed to declare a single-tier final dividend of 155 sen per share,

subject to the approval from shareholders at the Annual General Meeting.

Current year Prospects

2013 is expected to be another challenging year for the Group as the global

economy still faces many uncertainties. The Malaysian economy, however, is

expected to remain resilient which augurs well for the domestic market. The Group

will continue to innovate and renovate its product portfolio while promoting

nutritionally balanced diets and healthy lifestyles in line with the Government's goal

of creating a healthy and productive society.

The Group will remain focused on growing both top and bottom line, and will

continue its long-term strategy of investing in manufacturing capacity to support its

growth. A major project in the coming years will be to increase manufacturing

capacity in a new facility that will be built on the recently acquired land next to the

Shah Alam Manufacturing Complex.

The Group will also continue to intensify its marketing investments in line with

Nestl's objective of being the leader in Nutrition, Health & Wellness, as well as an

industry benchmark for its financial performance and being trusted by all

stakeholders.

Ends.


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For more information, please contact:

Ms. Zamira Yasmin Abdul RahmanNestl (Malaysia) BerhadTel: (+603) 7965 6212Email: [email protected]

Ms. Rose DahlanWestCoast CommunicationsTel: (+603) 7954 4505Email: [email protected]

Documents

2013 Nestle Q4 2012 Media Release En