Nestle records higher 2Q net profit of RM166.16 million
KUALA LUMPUR: Festive sales, new products and trade promotions resulted in a 2.9 per cent increase in Nestle (Malaysia) Bhd’s net profit for the second quarter (2Q) ended June 30, 2018 to RM166.16 million from the previous corresponding quarter’s RM161.43 million.
Revenue was up 2.0 per cent at RM1.3 billion versus RM1.28 billion recorded in same quarter in 2017.
“The increase in turnover was mainly driven by the launch of new products and strong consumer and trade promotions. In addition, increased festive sales during the Hari Raya period in June contributed to the positive growth,” said Nestle in statement yesterday.
During the quarter, Nestle also started operations of its new national distribution centre (NDC) and this resulted in a shift in sales from June (2Q) to July (3Q) due to the required and planned operations ramp-up at the new centre, which would support strong growth in the future.
For the first half of the year, net profit was up at RM397.37 million versus RM392.12 million in the same period in 2017, while revenue was also higher at RM2.73 billion compared with RM2.65 billion previously.
On outlook, Nestle said it remained committed to its long-term strategy to fuel growth via its innovative drive and by enhancing it strong brand portfolio, against the backdrop of a more encouraging year for the Malaysian economy.
“We are confident that our investments, including the new NDC, will enable us to maintain our solid growth momentum.
“In tandem, the company strives to improve efficiencies across our supply chain and reinvest savings to achieve sustainable and profitable growth,” it added. — Bernama