Nestle Q2 earnings rise to RM166mil
Better results due to new products, consumer and trade promotions
PETALING JAYA: Nestle (M) Bhd’s net profit rose 3% to RM166.16mil for the second quarter ended June 30 from RM161.44mil in the previous corresponding quarter on higher revenue.
During the quarter in review, the fast-moving consumer goods company saw its revenue increasing 2% to RM1.31bil from RM1.28bil in the previous corresponding quarter, and its earnings per share (EPS) rising to 70.86 sen from 68.84 sen previously.
Nestle has declared a first interim dividend of 70 sen per share.
Commenting on the group’s revenue growth, Nestle CEO Alois Hofbauer said in a statement: “The launch of new products and strong consumer and trade promotions were key contributors to our revenue growth. This was further supported by increased sales in June.”
He said during the quarter under review, Nestle started operations in its new national distribution centre (NDC).
“This move from the existing distribution centre to the new NDC has resulted in a shift of sales from June (Q2) to July (Q3) because of the required and planned ramp-up of operations in the new distribution centre,” Hofbauer said.
“We are confident that the new state-of-theart distribution centre with its larger capacity will support the expansion of our business and meet growing consumer demand, as well as support accelerated growth in the years ahead,” he added.
For the cumulative six-month period, Nestle’s net profit grew 1.3% to RM397.38mil from RM392.13mil in the corresponding period last year.
This resulted in its six-month EPS rising to RM1.69 from RM1.67 previously.
The group’s revenue rose 3.1% to RM2.74bil from RM2.66bil previously.
“This improved performance was underpinned by higher domestic sales, especially during the festive seasons, as well as growth in our export business,” Hofbauer said.
“We continued to deliver strong innovation, including Maggi Pedas Giler as well as the new Kit Kat Green Tea, Nestum Kurma & Prun and the opening of our Nespresso Boutique in the Gardens Mall, Mid Valley City.
“These new products and business models have enabled us to set a solid base for growth in the second half of the year,” he added.
On the group’s prospects for the remaining part of the year, Hofbauer said: “Against the backdrop of a more encouraging year for the Malaysian economy, we are confident that our investments, innovation drive and strong brand portfolio will enable us to maintain our solid growth momentum.
“In tandem, we will continuously work on improving efficiencies across our supply chain and reinvest savings to deliver sustainable and profitable growth.”