KUALA LUMPUR (Oct 30): Nestle (Malaysia) Bhd's net profit for the third quarter ended Sept 30, 2018 (3QFY18) rose 16% to RM137.69 million from RM119.01 million in the previous year, driven by strong domestic and export sales.

Earnings per share rose to 58.72 sen from 50.75 sen in 3QFY17. Revenue rose 8% in the quarter to RM1.43 billion from RM1.32 billion a year ago.

The company declared an interim dividend of 70 sen per share — the same as last year — in respect of the financial year ending Dec 31, 2018. It will be paid on Dec 13.

In a Bursa Malaysia filing today, it said the 0% goods and services tax implementation from June to August this year further boosted consumer spending, leading to higher demand and increased sales.

It said higher turnover coupled with an improved margin contributed to an additional gross profit of almost RM100 million to RM555 million (from RM456 million in 3QFY17).

"The favourable price trend in major raw materials and our continuous drive for efficiency increases along the supply chain [also] led to this margin improvement," it added.

For the cumulative nine months, net profit rose 5% to RM535.06 million from RM511.14 million, on the back of revenue which also rose 5% to RM4.17 billion from RM3.98 billion last year.

Going forward, the group remains committed to its long-term strategy to 'Fuel the Growth' via its innovative drive and enhancing its strong brand portfolio.

"We are confident that our investments, including the new Nestlé Distribution Centre, will enable us to maintain our solid growth momentum," it said.

At noon market close, shares of Nestle were RM1.10 lower at RM143.90, with a market value of RM34 billion.