NESTLE NET PROFIT RISES 2.9pc IN Q2
KUALA LUMPUR: Nestle (M) Bhd’s net profit for 2.9 per cent in the second quarter ended June 30 to RM166.16 million, from the previous corresponding quarter of RM161.43 million, on strong festive sales, new products and trade promotions.
Revenue was up two per cent at RM1.3 billion versus RM1.28 billion recorded in same quarter last year.
“The increase in turnover was mainly driven by the launch of new products and strong consumer and trade promotions. In addition, increased sales during Hari Raya 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 (second quarter) to last month (third quarter) 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 rose to RM397.37 million versus RM392.12 million in the same period last year, while revenue was also higher at RM2.73 billion compared with RM2.65 billion previously.
Nestle said it remained committed to its long-term strategy to fuel growth via its innovative drive and by enhancing its strong brand portfolio, against the backdrop of a more encouraging year for the 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.