Thursday 28 Mar 2024
By
main news image

KUALA LUMPUR (Aug 14): Nestlé (Malaysia) Bhd's net profit rose 2.9% to RM166.16 million in the second quarter ended June 30, 2018 (2QFY18) from RM161.44 million a year ago, on higher gross profit margin which grew by 10 basis points to 37.9% from 37.8%.

This resulted in a higher earnings per share of 70.86 sen for 2QFY18 compared with 68.84 sen for 2QFY17.

Quarterly revenue increased 2% to RM1.31 billion from RM1.28 billion in 2QFY17, mainly driven by the launch of new products and strong consumer and trade promotions.

"In addition, increased festive sales during the Raya period in June contributed to the group’s positive growth. In 2QFY18, we also started operations in our new national distribution centre (NDC)," Nestlé Malaysia said in a filing with Bursa Malaysia today.

"This move from the existing NDC to the new NDC resulted in a shift of sales from June to July because of the required and planned ramp-up of the operations in the new NDC, which will support strong growth in years to come," it added.

The group also declared an interim dividend of 70 sen per share, amounting to RM164.15 million, for the financial year ending Dec 31, 2018 (FY18), payable on Sept 27.

For the cumulative six months (1HFY18), Nestlé Malaysia's net profit grew by a marginal 1.4% to RM397.38 million from RM392.13 million a year ago, while revenue rose 3.1% to RM2.74 billion from RM2.66 billion in 1HFY17.

In a separate statement, Nestlé Malaysia chief executive officer Alois Hofbauer attributed the improved performance for 1HFY18 to higher domestic sales, as well as increased export business.

"The domestic growth was driven by strong demand, especially during the festive seasons," he said.

"The group continued to deliver strong innovations and renovations in 1HFY18 including Maggi Pedas Giler, as well as other innovations such as the new Kit Kat Green Tea, Nestum Kurma & Prun and the opening of new Nespresso boutique in the Gardens Mall, Mid Valley City here.

"These new products and business models have set a solid base for growth in the second half of the year," Hofbauer added.

On current year prospects, Hofbauer said the group is confident that its investments, including the new NDC, will enable it to maintain its solid growth momentum.

"In tandem, we will continuously work on improving efficiencies across our supply chain and reinvest savings to deliver sustainable and profitable growth," he said.
 

      Print
      Text Size
      Share