KUALA LUMPUR: Nestle (Malaysia) Bhd has announced a net profit of RM672.9 mil for the year ended Dec 31, 2019 compared with RM658.88 million in the previous year.
The better performance was achieved in spite of higher commodity prices and unfavourable exchange rates, mitigated through its continued focus on driving efficiencies and savings to protect the financial performance.
The group recorded a turnover of RM5.51 bil, on par with the previous year.
“The good performance in 2019 was supported by strong operational sales execution, the anticipation of market trends and a sustained stream of innovations throughout the year,” the company said in a filing to Bursa Malaysia today.
Nestle said its launches in 2019 included the extension of the Maggi Pedas Giler range, new ready-to-drink variants including Nescafe Tarik Kurang Manis and Milo Protein Up, the launch of the Starbucks at Home range, Nestum Brown Rice, as well as the renovation of the La Cremeria ice cream range.
For the fourth quarter ended Dec 31, 2019, net profit was higher at RM131.81 mil compared with RM123.82 mil, while revenue stood at RM1.32 bil against RM1.34 bil previously.
“We are encouraged by our performance in 2019, particularly in the context of the volatile trading environment. Building on this in 2020, we will continue to focus on driving strong growth momentum, nurturing our brands and building capabilities to continue delivering sustainable and profitable growth,” it said.
Nestle foresees soft consumer demand will continue to prevail as well as 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.
“However, 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,” it added.
Nestle is proposing a final dividend of 140 sen per share for the financial year ended Dec 31, 2019 subject to shareholders’ approval at the upcoming 2020 annual general meeting. – Feb 25, 2020, Bernama
