WELCOME TO THE WORLD OF NESCAFÉ
Here at NESCAFÉ we believe there is something special in our little everyday moments, from that first wonderful sip of hot, milky coffee in the morning to those ten stolen minutes of me-time with a latte in the afternoon. At a time when everything and everyone is more closely connected than ever, we cannot ignore how our actions affect the world around us. We have to look beyond the cup. That’s why we started the NESCAFÉ Plan, a global initiative that supports responsible farming, production and consumption. Working with the Rainforest Alliance, the Sustainable Agriculture Network (SAN), and the Common Code for the Coffee Community (4C), NESCAFÉ aims to transform coffee-farm management to benefit working and future generations of farmers. Specific measures include doubling the amount of coffee bought directly from farmers and distributing 220 million high-yield, disease resistant coffee plantlets. Get the all details in the following articles.
As part of the NESCAFÉ Plan, we are working in many ways to reduce our environmental footprint. We are employing cleaner, natural refrigerants, converting waste into energy, using cleaner energy sources.
NESCAFE "Rumah Idaman" Contest. Take part in the NESCAFE CHILL-LAH Express Contest and stand a chance to win RM10,000. Terms and conditions apply.
Visit website for more details. (This information was published in September 2011)
Current Nescafe Contest
Program Beli & Tebus NESCAFÉ. Redemption Period: 10th October 2011 - 13th January 2012
ESCAFÉ Chilllah Express. Contest Period: 18th July 2011 - 1st November 2011. Visit www.nescafe.com.my now!
Peraduan MILO Bonanza Hebat Kembali! Contest Period: 3rd October 2011 - 27th November 2011. Visit www.milo.com.my now!
Nestlé records stronger performance on positive domestic and regional economic developments
August 18, 2011
Key Highlights
Turnover of RM2.3 billion in first half of 2011, up by 13.0% from corresponding period in 2010.
Robust double-digit growth driven by both domestic and export sales.
Net profit up by 8.5% to RM 259.2 million, with a slight percentage margin reduction due to higher raw material costs and higher marketing investments.
Net interim dividend of RM0.55 per share declared.
Stronger domestic and regional demand helped Nestlé (Malaysia) Berhad Group register a turnover of RM 2.3 billion for the first half of the financial year ended 30 June 2011; 13.0% higher than the previous corresponding period.
The commendable performance was attributed to the fact the Group has been consistently embarking on innovation and renovation activities that paved the way for the launch of new products and growth opportunities. Among the key products launched, MILO Sejuk, NESTEA and MAT KOOL Split received good acceptance from consumers.
Export sales which have been consistently on the uptrend, registered strong double-digit growth and now constitute close to a quarter of the Group’s total turnover. Stronger demand for Soluble Coffees and Coffee Creamers led the growth, along with increased demand for MILO powders and MAGGI noodles.
From an input cost perspective, the prices of commodities continued to pose challenges as key raw materials consumed by the Group, such as coffee beans and cocoa powder, remained at high levels versus the same period last year. Volatility in the commodity market continued to be driven by supply tensions, strong demand and speculative investments. Over the period however, price increases on selective products and operational savings helped to cushion the impact of this volatility and enabled the gross profit margin to remain flat.
The period also saw an increase in marketing and promotional activities, with investments in media and consumer promotions, to strengthen the company’s brands and to introduce new products. The higher expenses incurred to support the sales growth resulted in a slight percentage margin reduction on profit before tax. The Group’s net profit increased by 8.5% to RM259.2 million, reflecting a similar percentage margin trend.
Q2 2011
The Group posted a turnover of RM1.2 billion in the second quarter of 2011; an increase of 10.0% versus the same period last year. This was a reflection of the stronger performance by both the domestic and export sales categories, with the latter contributing slightly more than 25% of the total Group sales in the second quarter.
Supported by innovation and renovation activities, domestic sales continued to perform well. New products introduced towards the end of the last quarter such as MILO Sejuk and NESTEA are showing good results in the market.
The strong export performance was the result of growing demand for coffee creamer and soluble coffee within the Asean region, contributing to a robust double-digit export growth. The capacity investments made in the last three years have paid off, as the Group was able to fully capitalise on higher regional demand following the global economic turnaround in early 2009.
Operating profit meanwhile, increased by 6.5% to RM132.2 million, with a slight reduction in percentage margin due to higher raw materials cost, coupled with strong promotional and marketing investments. Lower financing cost offset by a higher effective tax rate drove the net profit to show a similar percentage margin trend.
Prospects for H2 2011
The prospects for the global economy are uncertain due to the unfavourable economic conditions in the United States and Europe. The sharp increase in global commodity prices and the Malaysian Government's move to gradually reduce food and fuel subsidies is putting pressure on the Group's input costs. The Group will continue to closely monitor commodity prices, leverage operational efficiencies and cost savings initiatives to minimize or avoid passing on price increases to consumers.
Following its strong performance in the first half of the year, the Group will continue to make investments in line with its objective of being the leader in Nutrition, Health & Wellness, as well as being an industry benchmark for its financial performance, that is trusted by stakeholders.
Investment of CHF 35 Million in Breakfast Cereals Factory in Malaysia
22 April 2011 - Cereal Partners Worldwide (CPW), a joint venture between Nestlé and General Mills, will invest CHF 35 million over two years in the construction of a new breakfast cereals factory in Malaysia.
The factory - due to begin production in 2012 - will make best-selling Nestlé breakfast cereal brands Koko Krunch, Honey Stars, Cookie Crisp, Koko Krunch Duo and Milo, for consumers in Malaysia, and for export to Singapore, Indonesia and Thailand.
Located in Chembong, Negeri Sembilan, the 6,500 metre square factory will enable the local production of Nestlé breakfast cereals for the first time in Malaysia, which are currently being imported.
Dato’ Frits van Dijk, Nestlé’s Executive Vice President and Zone Director for Asia, Oceania, Africa and the Middle East (AOA), explained why Malaysia was selected as the factory’s location.
He said: "In addition to spreading the production base throughout the region, Malaysia was selected based on the readily available quality local ingredients as well as for the country’s investment friendly environment and infrastructure.
"Having a factory in Negeri Sembilan also means that we are producing the breakfast cereals right here in Malaysia, which is one of the most important markets in the region. This will create hundreds of direct and indirect jobs, so benefiting Malaysian society."
The new factory, which will source up to 80% of its raw materials from local suppliers, will be built based on policies for environmental sustainability adopted by both partners in the CPW venture, and in full compliance with environmental legislation.
Cereal Partners Worldwide
The new factory will be the third CPW cereals production centre in Asia, as Nestlé breakfast products in the region continue to increase in popularity.
The two other factories are in Lipa, in the Philippines, and in Tianjin, China. They will maintain existing production capacities for their respective domestic markets, as well as for export to other Asian countries.
The new factory will be built next to an existing Nestlé factory in Chembong, which produces popular confectionery brands including Kit Kat.
Nestlé records stronger performance on positive domestic and regional economic developments
August 18, 2011
Key Highlights
Turnover of RM2.3 billion in first half of 2011, up by 13.0% from corresponding period in 2010.
Robust double-digit growth driven by both domestic and export sales.
Net profit up by 8.5% to RM 259.2 million, with a slight percentage margin reduction due to higher raw material costs and higher marketing investments.
Net interim dividend of RM0.55 per share declared.
Stronger domestic and regional demand helped Nestlé (Malaysia) Berhad Group register a turnover of RM 2.3 billion for the first half of the financial year ended 30 June 2011; 13.0% higher than the previous corresponding period.
The commendable performance was attributed to the fact the Group has been consistently embarking on innovation and renovation activities that paved the way for the launch of new products and growth opportunities. Among the key products launched, MILO Sejuk, NESTEA and MAT KOOL Split received good acceptance from consumers.
Export sales which have been consistently on the uptrend, registered strong double-digit growth and now constitute close to a quarter of the Group’s total turnover. Stronger demand for Soluble Coffees and Coffee Creamers led the growth, along with increased demand for MILO powders and MAGGI noodles.
From an input cost perspective, the prices of commodities continued to pose challenges as key raw materials consumed by the Group, such as coffee beans and cocoa powder, remained at high levels versus the same period last year. Volatility in the commodity market continued to be driven by supply tensions, strong demand and speculative investments. Over the period however, price increases on selective products and operational savings helped to cushion the impact of this volatility and enabled the gross profit margin to remain flat.
The period also saw an increase in marketing and promotional activities, with investments in media and consumer promotions, to strengthen the company’s brands and to introduce new products. The higher expenses incurred to support the sales growth resulted in a slight percentage margin reduction on profit before tax. The Group’s net profit increased by 8.5% to RM259.2 million, reflecting a similar percentage margin trend.
Q2 2011
The Group posted a turnover of RM1.2 billion in the second quarter of 2011; an increase of 10.0% versus the same period last year. This was a reflection of the stronger performance by both the domestic and export sales categories, with the latter contributing slightly more than 25% of the total Group sales in the second quarter.
Supported by innovation and renovation activities, domestic sales continued to perform well. New products introduced towards the end of the last quarter such as MILO Sejuk and NESTEA are showing good results in the market.
The strong export performance was the result of growing demand for coffee creamer and soluble coffee within the Asean region, contributing to a robust double-digit export growth. The capacity investments made in the last three years have paid off, as the Group was able to fully capitalise on higher regional demand following the global economic turnaround in early 2009.
Operating profit meanwhile, increased by 6.5% to RM132.2 million, with a slight reduction in percentage margin due to higher raw materials cost, coupled with strong promotional and marketing investments. Lower financing cost offset by a higher effective tax rate drove the net profit to show a similar percentage margin trend.
Prospects for H2 2011
The prospects for the global economy are uncertain due to the unfavourable economic conditions in the United States and Europe. The sharp increase in global commodity prices and the Malaysian Government's move to gradually reduce food and fuel subsidies is putting pressure on the Group's input costs. The Group will continue to closely monitor commodity prices, leverage operational efficiencies and cost savings initiatives to minimize or avoid passing on price increases to consumers.
Following its strong performance in the first half of the year, the Group will continue to make investments in line with its objective of being the leader in Nutrition, Health & Wellness, as well as being an industry benchmark for its financial performance, that is trusted by stakeholders.
