Profit dips in Q2, 70 sen dividend declared

PETALING JAYA: Nestle (Malaysia) Bhd saw a 14.15% dip in profits for the second quarter ended June 30 to RM162.07 million from RM188.79 million due to higher raw material prices and weaker ringgit.

Effective marketing and trade activities in conjunction with Ramadhan and Hari Raya as well as exports contribution helped the group’s revenue for the quarter under review inch slightly higher by 3.75% to RM1.23 billion from RM1.28 billion.

Nestle declared an interim dividend of 70 sen per share.

“In the second half of the year, we expect headwinds especially from raw material prices to continue. However, we are confident that our innovative drive will enable us to maintain a solid growth momentum,” the group’s CEO Alois Hofbauer said in a statement.

“Our balanced approach of proactive cost management and continuous efficiency enhancements across our supply chain will allow us to achieve sustainable and profitable growth moving forward,” he added

According to Hofbauer, Southeast Asia is a core growth driver for Nestle, of which Malaysia is a key market. He said Nesltle is confident of tapping into the vast potential of the Malaysian market.

Its net profit for the first half of the year stood at RM392.50 million, which is 4.14% lower than the RM409.47 million recorded in the same period last year.

Revenue for the first six months of 2017 improved by 4.11% % to RM2.65 billion from RM2.55 billion.

Its shares closed 0.45% higher at RM84.58 with some 44,100 shares changing hands. Nestle’s market capitalisation stood at RM19.79 billion.