KUALA LUMPUR (April 26): Nestle (Malaysia) Bhd is slated to raise prices for 22 of its products starting July 1, according to the Federation of Sundry Goods Merchants Associations of Malaysia (FSGMAM).
Among the products facing price hikes are Milo, Nescafe, and Maggi Tomato Ketchup.
"We had received official notification from Nestle regarding the impending price adjustments," FSGMAM president Hong Chee Meng told The Edge on Friday, adding that the association had disseminated this information to its members nationwide to facilitate necessary adjustments.
While Hong noted that the extent of price increases varies for each product, based on a back-of-the-envelope calculation, the overall increase stands at approximately 5% to 6%.
On Monday, Nestle Malaysia chief executive officer Juan Aranols reportedly mentioned the company's plan to recalibrate prices of selected products in response to the recent surge in global cocoa prices.
Aranols emphasised the company's intention to keep price hikes minimal, aiming for moderate adjustments for specific products.
"The company is cautious about price increases, which can affect customers' purchasing power," he said.
Over the last one year, global cocoa price has increased by more than 246% to US$10,998 (RM52,542.95) per tonne.
Nestle Malaysia's net profit increased by 6.4% to RM659.87 million in FY2023, up from RM620.33 million the previous year, though this growth rate was lower than the 8.9% achieved in FY2022. Revenue also grew by 5.8% to RM7.1 billion in FY2023, but this was slower than the 16.2% increase in FY2022.
At 3pm, shares in Nestle Malaysia were 20 sen or 0.16% higher at RM127.20, giving the group a market capitalisation of RM29.83 billion.