Nestle: No plan to raise product prices

Nestle (Malaysia) Bhd expects 2012 to be a very challenging year, saying many uncertainties could dampen global economic
growth and further drive volatility in commodity costs.

However, its managing director Peter R. Vogt said the group does not plan to increase the prices of Nestle products but to maintain prices as much as possible.

"Nestle was looking at expanding its branding, productivity and cost efficiency to overcome commodity price increases, rather than increase the prices of its products," he told reporters after the company's annual general meeting in Kuala Lumpur today.

He also said volatile commodity prices are expected to continue in 2012 and the group will remain vigilant and take all necessary measures to mitigate and soften any impact on the business.



"The group will continue to capitalise on product innovation as well as promoting nutritional diets and healthy lifestyles in line with the government's goal of creating a healthy and productive society," Vogt said.

Nestle will remain focused on growing both its top and bottom lines in 2012 and continue to leverage its Nestle Continuous Excellence (NCE) savings initiatives.

"The group will continue to intensify its marketing investment in line with our objective of being the leading food, nutrition, health and wellness brand, become an industry benchmark for financial performance as well as maintain our stakeholders' trust," he added.

The company yesterday announced a turnover of RM1.16 billion for the first quarter ended March 31, 2012, representing an 8.5 per cent increase over the corresponding period in 2011.

Going forward, he said Nestle achieved the highest-level rating in the 2011 Creating Shared Value (CSV) report, which accompanies the group's corporate and financial reports.

"The report was externally verified by Bureau Veritas Certification for an A+ rating in accordance with Global Reporting Initiative 3.0 standards for the Food Processing Sector," he said. -- BERNAMA