Nestlé Malaysia's profits spike attributed to marketing and new products

Nestlé Malaysia reported an increase in its gross profit by almost RM60 million for the fourth quarter of last year. In a filing with Bursa Malaysia yesterday, it said that besides a strong 11.9% growth in export sales, domestic sales also grew 3.1% due to successful trade and marketing, said the filing.Reviewing the financial performance, the company noted in the filing that the strong marketing and promotional activities have led to higher sales despite higher operational expenses. There were also a favourable price trend in major raw materials and efficiency increases across the supply chain.Speaking about the profitability, Nestlé Malaysia CEO Juan Aranols told Malay Mail that the marketing and trade investments were aimed at heightening awareness and endorsement of the company's brands by consumers. He added that the brand also used digital and eCommerce channels, "to explore new avenues to deepen engagement with consumers."Meanwhile, there have been good reception for new products. The company said in the filing, "Our MAGGI Noodles range saw especially strong growth, mainly contributed by the launch of our Pedas Giler variety. Other innovative product launches include Nestlé Tropicana Lychee Yogurt Flavour Ice Cream, OREO Ice Cream, MILO 3-in-1 Less Sugar, KIT KAT Duo Milk Tea and NESCAFÉ Cold Brew."Additionally, the group increased its revenue by 5.2%, from RM1.28 billion to RM1.35 billion. While it expects higher commodity prices and more volatile demand in its main export markets, Nestlé Malaysia said it has a positive outlook for the year ahead, with "strong plans in place to continue generating sustainable and profitable growth". It also looks forward to the continued strong demand for its brands in Malaysia.Last October, Nestlé Malaysia appointed Publicis One as its media agency, which had recently begun work in January. In December, Juan Aranols took over Alois Hofbauer, who was the CEO for five and a half years. In the same month, Nestlé Malaysia filed a police report after QR codes on MAGGI products were found to be diverted by a third party agency to offensive content and possible malware when scanned.