KUALA LUMPUR (Nov 7): Stronger domestic and export sales pushed Nestle (M) Bhd's revenue up 4.77% year-on-year to RM1.32 billion from RM1.26 billion in its third quarter ended Sept 30, 2017 (3QFY17).

“The good growth momentum was well supported by domestic and exports sales, which grew 4.2% and 6.8% respectively,” said Nestle in a Bursa Malaysia filing yesterday. 

“Business on selected product categories helped to deliver the desired growth for domestic sales, whilst strong export performance have benefited from the good growth registered by the Nestle affiliated companies especially in the Asean region,” it added.

The group declared a 70 sen interim dividend for the quarter — unchanged from last year — in respect of FY17, which is payable on Dec 14. Net profit for the quarter under review came in at RM119.75 million compared with RM160.71 million a year ago, while earnings per share was at 51.07 sen, versus 68.53 sen in 3QFY16. 

For the first nine months of FY17 (9MFY17), Nestle's revenue was up 4.33% RM3.98 billion from RM3.81 billion in 9MFY16, while net profit came in at RM512.25 million from RM570.19 million last year, which it said was "as anticipated".

“This profit development reflects on the one side a different phasing of the profit over the quarters, while the 4QFY16 profit was exceptionally low due to heavy marketing investments for an early Chinese New Year 2017, we expect 4QFY17 profit on a considerably higher level,” it said.

Alois Hofbauer, Nestle's chief executive officer, said in a statement: “We had anticipated continuing challenges from external headwinds this year and are very pleased that the group has once again delivered strong third quarter and nine-month sales growth against an exceptionally high comparable sales period last year, which was also conducive for raw material prices.

“We had also foreseen the impact from challenging market conditions this year on the business and put clear plans in place to mitigate this. As a result, the group continued to maintain a solid profit situation,” he added.

On prospects, the group said it will continue with its ‘Fuel the Growth’ strategy that pushes for higher efficiency across the supply chain, reinvestment, a renovation of the group portfolio and intensified trade-and-consumer promotions.

“Overall, we are confident that our balanced approach of proactive cost management and effective trade and marketing investment will lead us to a solid profit level for the full year 2017,” it said.

Nestle shares closed 20 sen or 0.23% lower at RM88 today, giving it a market capitalisation of RM20.64 billion.