Thursday 28 Mar 2024
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KUALA LUMPUR (April 27): Nestle (Malaysia) Bhd will be allocating RM200 million as capital expenditure (capex) for this year, compared with RM123 million last year.
 
Chief financial officer Martin Peter Krugel said the capex is mainly for upgrading of the group’s manufacturing facilities across all product categories.
 
It covers all products, including Milo, noodles and the confectionaries, he told reporters after the group’s annual general meeting today,
 
Currently, Nestle has eight manufacturing facilities located in Petaling Jaya, Shah Alam, Chembong in Negeri Sembilan, and Kuching, Sarawak.
 
Nestle (Malaysia) chief executive officer Alois Hofbauer said he remains confident that the group can continue to deliver good results for the current financial year ending Dec 31, 2017 (FY17), despite the challenging consumer confidence level and higher input costs.
 
He expects the group's improved efficiency to mitigate the impact of higher commodity prices and weaker ringgit.
 
The group reported a 4.4% rise in net profit to RM230.43 million for the first quarter of FY17, from RM220.68 million a year earlier. Revenue also grew 4.4% to RM1.37 billion, from RM1.31 billion, backed by higher contributions from both domestic and export sales, which gained 4.7% and 3.6% respectively.
 
Nestle’s share price was down 20 sen or 0.24% to RM82.26 at midday break today, for a market capitalisation of RM19.29 billion. 

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