KUALA LUMPUR (April 23): Nestlé (Malaysia) Bhd's net profit for the first quarter ended March 31, 2019 rose 1.7% to RM235.22 million from RM231.22 million a year earlier, on the back of lower operating expenses.

In a filing with Bursa Malaysia today, Nestlé Malaysia said revenue for the quarter rose 1.6% to RM1.45 billion from RM1.43 billion a year earlier. This represents a growth increase of 3.2% year-on-year if taking into account the divestment of its chilled dairy business on Jan 1. As a result, earnings per share was up at RM1, versus 98.6 sen previously.

In a separate statement, Nestlé Malaysia chief executive officer Juan Aranols said the group's revenue was driven by robust domestic sales of 4.9% for the quarter, fuelled by strong sales momentum during the Chinese New Year festive period.

"We continued to create new consumption opportunities and accelerated our product innovation drive in the first quarter. New product innovations in 1Q include MAGGI Pedas Giler 2X Ayam Bakar, MILO with Whole Grain Cereal, as well as NESTUM Brown Rice. Looking ahead, we remain focused on leveraging new opportunities for our products, delivering a steady stream of innovations and constantly driving efficiencies to accelerate our growth," he said.

On Nestlé Malaysia's prospects, Aranols said the group was encouraged by the solid start to the year.

"Although we still see some pressures on commodities and fluctuating consumer sentiment, we are optimistic that we will be able to sustain this momentum in the year ahead, given the robust plans we have in place to deliver sustainable and profitable growth," he said.

At the midday break today, Nestlé Malaysia shares dipped 0.6% or 80 sen to RM145.20.