KUALA LUMPUR (April 25): Nestle (Malaysia) Bhd closed its first quarter ended March 31, 2017 (1QFY17) with a 4.4% rise in net profit to RM230.43 million from RM220.68 million a year ago, as efficient cost management negated the impact of higher commodity prices and a weaker ringgit.

"The profit structure of the group continued to stay healthy: the internal efficiency initiatives and diligent cost management helped to over compensate the negative effects from increased commodity prices and weaker ringgit.

"Via this, we were able to continue with our strong marketing and trade investments and to further strengthen our profit situation," said Nestle in a Bursa Malaysia filing today.

Revenue for the period grew 4.4% to RM1.37 billion from RM1.31 billion recorded in the same period last year, backed by higher contributions from both domestic and export sales, which gained 4.7% and 3.6% respectively.

"Our decision to invest upfront in marketing and trade promotions in the last quarter of 2016 has clearly paid off and led to positive results in this quarter," said its chief executive Alois Hofbauer in a separate statement.

The food manufacturer also produced several new line-ups in 1QFY17, including Mat Kool Panda ice-cream, Nescafe Gold Creamy Latte and Dark Latte coffee, Maggi Hot Mealz and Roasted Sesame Chicken instant noodles, and Kit Kat Mini chocolate waffle.

Looking forward, Nestle said it will continue to implement its "Fuel the Growth" strategy, which focuses on supply chain efficiency and intensified trade and consumer promotions.

Though higher input costs and consumer confidence levels will remain a challenge in 2017, the group is confident its "proven strategy to fuel, innovate and transform to grow" will enable it to weather these headwinds, said Hofbauer.

At 3.15pm, Nestle shares gained 0.91% or 74 sen to RM82.14, giving it a market capitalisation of RM19.19 billion.