Nestlé’s 4Q earnings rise 6.5% YoY

Our local sales growth at 4.7% is ahead of the market growth and confirms that our brands remain highly relevant

By FARA AISYAH / Pic By MUHD AMIN NAHARUL

NESTLÉ (M) Bhd’s net profit for the fourth quarter ended Dec 31, 2019 (4Q19), increased 6.46% year-on-year (YoY) to RM131.82 million from RM123.82 million a year ago on the back of robust domestic sales and continued focus on demand generation.

Its earnings per share in the three months were also higher at 56.21 sen against 52.8 sen in the same quarter last year.

The company’s quarterly revenue slightly decreased 1.4% to RM1.33 billion from RM1.35 billion in 4Q18, impacted by subdued export demand against the backdrop of regional and global uncertainties.

During the quarter, Nestlé Malaysia introduced new products including MILO Nutri Pluz, MAGGI Pazzta, KIT KAT Mandarin Orange and KIT KAT Stick Ice Cream, among others.

For the full year (FY19), the F&B manufacturer’s net profit increased 2.13% YoY to RM672.91 million, while revenue remained flat at RM5.52 billion.

Nestlé Malaysia CEO Juan Aranols said the results reflect the solid foundations of the company and the efforts deployed to continue delivering strong results in spite of a difficult environment.

“Our local sales growth at 4.7%, net of the chilled dairy divestment, is ahead of the market growth and confirms that our brands remain highly relevant and present in the life of Malaysians.

“Our solid performance in Malaysia was supported by strong operational sales execution, leveraging market trends and a sustained stream of innovations throughout the year, many of which are resonating well with our consumers,” he said in a statement yesterday.

Nestlé Malaysia’s successful launches in 2019 included the extension of the MAGGI Pedas Giler range, Nescafé Tarik Kurang Manis and MILO Protein Up, STARBUCKS AT HOME range, NESTUM Brown Rice and the renovation of Ice Cream LA CREMERIA range, among others.

Aranols said the group will continue to focus on driving strong growth momentum, nurturing its brands and building capabilities to continue delivering sustainable and profitable growth in FY20.

“There will be pressure from external factors, including commodity prices or any of the several crises that the world is confronting in this early part of the year.

“But we remain optimistic that with our strong fundamentals and our focus on consumer-driven commercial activities, we are well-positioned to achieve continued growth in 2020,” he added.

Aranols said Nestlé Malaysia is also committed to leveraging its size and presence to make effective and positive contributions to society and the environment.

The board has proposed a final dividend of RM1.40 to be paid on May 21, 2020.