KUALA LUMPUR (April 24): Nestlé (Malaysia) Bhd kicked off the first quarter of its financial year ending Dec 31, 2018 (FY18) with an improved net profit of RM231.22 million on the back of a higher revenue which offset the impact of slightly higher commodity prices, as well as increased marketing investments for the Chinese New Year (CNY) period.

The food and beverage (F&B) giant reported a marginal 0.23% increase in its net profit in the three months ended March 31, 2018 (1QFY18), from RM230.69 million a year ago. Earnings per share rose slightly to 98.6 sen, from 98.37 sen in 1QFY17.

Quarterly revenue rose 4.2% to RM1.43 billion, from RM1.37 billion, driven by higher domestic sales (up 4.4% year-on-year) and export sales (up 3.4%).

In a filing with Bursa Malaysia, Nestlé Malaysia said relevant product innovations with the right marketing and promotional support have helped the group to achieve high sales during CNY. 

"(The group reported) a satisfactory bottom line performance, considering that 1QFY17 was already on a high base," the filing added.

On prospects, Nestlé Malaysia chief executive officer Alois Hofbauer said it will continue with its FIT strategy, which is underpinned by the three pillars of ‘Fuel to Grow’, ‘Innovate to Grow’ and ‘Transform to Grow’.

“While the year ahead is expected to remain challenging, we are confident that our long-term FIT strategy, solid brand portfolio, highly-talented people and continuous focus on innovation will continue to contribute to our Company’s sustainable and profitable growth,” Hofbauer added.

At 2.38pm, Nestlé Malaysia shares were down 50 sen or 0.34% at RM147.50, with 159,900 shares traded, giving it a market capitalisation of RM34.59 billion.