Nestle profit up on gains

from halal tax incentives

2010' errA~ 2 6 FEB
But value of exports down due to weaker demand for milk powder
By EUGENE MAHALINGAM
eugenicz@thestar.com.my 'Nestle
,(RM)
PETALING JAVA: Nestle (M) Bhd's
net profit for the fourth quarter 35;
ended Dec 31 rose 11 %to RM86.22mil
from RM77.28mil in the previous
corresponding period as it benefited
from halal tax incentives on higher
capital expenditure,
Revenue, however, fell to
RM950.63mil from RM972.65mil
previously.
"Total turnover was affected by I I
the lower value of exports. Despite 'Aug25. '09 Feb25, '10
an increase in volumes, exports saw
a reduction in value due to a shift in Quarterto Dec 31 , "change
demand from milk powder to lower I -.,
, RMml1
, .
,(y-o-y)
per kilo value products such as cof- Revenue 950.63 -2.26
fee creamers and ready-to-drink
beverages," Nestle told Bursa Net'profit:,
-"---_.,~

EPS (sen)
...... - 86~2'2... '
~_

36,77
, 11.57
11.59
Malaysia yesterday. ".
The company's basic earnings per
share for the fourth quarter rose to ;' Consensus
, estimates
"

36.77 sen from 32.95 sen previously.
An analyst from a local bank-
backed brokerage said the results
were within expectations.
"Many people are still cautious
and prefer to go for cheaper prod-
ucts if they still can."
For its financial year ended Dec 31
(FY09), Nestl~'s net profit increased
to RM351.79mil from RM340.89mil
while revenue fell to RM3.74bil from
RM3.88bil previously.
"The domestic full-year sales per-
formance was close to flat, favoura-
bly impacted by strong sales in quar-
ter four.
'This was an overall satisfactory
performance considering the 3.8%
contraction of the local economy
reported in the first nine months, as
Year ",)' -'09 '10/ '11/
: EPS (RM) 1.53 1.62 1.71
" ~ PE (times)": 22.1 -" 20.9 i9.8
EP5: earnings per share PE: price/earnings ratio
y-o-y :year-an-year f: forecast
J n=-"f' ;.iIl~.
system, amounting to RM234.5mil
for FY09.
Nestle sees a reduction in export value due to a shift in demand from In a separate statement, Nestle
milk powder to lower 'per kilo value products such as coffee creamers managing director Peter Vogt said
and ready-to-drink beverages ' the company would continue to
well as the Milo and milk products manufacturing lines. invest in building its brands with
price reductions in the beginning of The new lines would increase pro- strong marketing and consumer
the year," Nestle said. duction capacity and provide flexi- promotions that would help stimu-
Despite the challenging economic bility for product innovations and late consumer demand.
environment, the company said it renovations, it said. "These efforts will allow the group
remained focused on its long-term Nestle also declared a net final to be well positioned for the eco-
strategy by investing RM267mil in dividend of RM1 per share, tax nomic rebound forecast for 2010
capital expenditure, mainly in new exempt under the single-tier tax and help us grow our topline."