Nestle Steadies the Course

Alois Hofbauer, the new MD for Nestle M Bhd, comes on the Breakfast Grille to talk about the future course for the FMCG giant and what else is in the pipeline for the company. In the interview, he talk about:

- The outlook for the Malaysian market, and how the company intends to mitigate any possible weakening consumer sentiment;

- About their plans for capex for the year. For FY2012, the company invested RM158 million, and Alois gives an indication that it will be higher going forward;

- Talks about the status of its new plant in Shah Alam, and how its on track for commissioning in 2014. He says that it will double capacity and there is still room and that land to expand;

- He also talks about what is in the product pipeline, and how Nestle intends to build on its core products by releasing several variations. He also admits that beyond just the capacity expansion that has been driving earnings, Nestle will continue to innovate;

- On the matter of the share price, which has near doubled over the past three years, he says there is no chance for a stock split at this point.