KUALA LUMPUR, Feb 28 — Nestle (Malaysia) Bhd posted a higher pre-tax profit of RM766.49 million with revenue hitting RM5.06 billion on better sales and improved efficiency in its factories last year.
In a filing to Bursa Malaysia today, Nestle said the results were better than the RM727.71 million pre-tax profit and RM4.83 billion revenue posted in 2015.
“Domestic sales grew 3.3 per cent driven by continuous innovation and renovation initiatives, as well as, successful marketing and trade promotions.
“Exports demonstrated a good turnaround by showing a 9.6 per cent growth versus a flat performance in 2015,” it said.
The better pre-tax profit was due to higher turnover, favourable commodity prices and increased efficiency in factories and overall supply chain, it said.
“The savings were partially re-invested in stronger marketing and trade promotions which helped strengthen our market share position.
“This balanced business approach has enabled the group to increase operating profit by RM39 million (5.1 per cent) compared with 2015,” said Nestle.
However, for the fourth quarter ended Dec 31, 2016, Nestle saw its pre-tax profit decline to RM81.49 million compared with RM118.67 million for the same quarter in 2015.
The company attributed it to planned and higher marketing and trade investments in preparation for the early Chinese New Year celebrations in 2017.
Revenue, however, was higher at RM1.24 billion in the quarter compared with RM1.19 billion recorded in the same quarter in 2015.
Nestle said it would continue with its “Fuel the Growth” strategy, striving for efficiency increase throughout the supply chain and reinvesting the realised improvements into the company’s sustainable growth, by innovating and renovating portfolio and intensifying trade and consumer promotions. — Bernama
