Nestle net earnings slip to RM162m despite higher revenue
KUALA LUMPUR: Nestle (Malaysia) Bhd posted improved revenue in the second quarter but rising costs bogged down its profit for the period.
Net profit eased 14.16 per cent to RM162.07 million in the second quarter to June 30 from RM188.8 million a year ago.
Nestle Malaysia, in a filing to Bursa Malaysia, said higher raw material prices coupled with a weaker ringgit had made the input costs more expensive.
Group revenue increased 3.23 per cent to RM1.28 billion from RM1.24 billion previously, as effective marketing and trade activities held for the Ramadan month and Hari Raya Aidilfitri celebrations helped to deliver the desired growth for the quarter.
The company is cautiously optimistic on the outlook for the economy and will continue with its “Fuel the Growth” strategy.
“We are confident that our balanced approach of proactive cost management and effective trade and marketing investments will help improve profit after tax situation for the full year,” it said.