KUALA LUMPUR: Nestlé (Malaysia) Bhd posted stronger earnings and revenue in the first quarter ended March 31, 2017, boosted by domestic and export sales.
It reported on Tuesday earnings rose 4.4% to RM230.43mil from RM220.67mil a year ago. Revenue was up 4.4% at RM1.37bil from RM1.33bil. Earnings per share were 98.26 sen compared with 94.11 sen.
This was achieved on the back of strong contributions from both domestic and export sales, which achieved good growth of 4.7% and 3.6% respectively.
Nestle Malaysia CEO Alois Hofbauer said: “We had a good start to the year and delivered solid positive results. Domestic sales were driven by marketing and trade promotions, coupled with a strong base created by new products introduced in the last two years that continue to benefit the group.”
He pointed out Nestle Malaysia's decision to invest upfront in marketing and trade promotions in the last quarter of 2016 has clearly paid off and led to positive results in this quarter.
During the quarter, it launched several new product innovations that included Mat Kool Panda, Nescage Gold Creamy Latte and Dark Latte, Maggi Hot Mealz, Maggi Roasted Sesame Chicken Noodles and Kit Kat Mini.
“This is part of our continuous innovation and renovation drive to meet the evolving needs of Malaysians,” he added.
Elaborating on the group's financial performance, Hofbauer said the group’s profit structure remained healthy, supported by internal efficiency initiatives and diligent cost management which helped to mitigate the impact of increased commodity prices and the weaker Ringgit.
“This enabled the group to deliver a higher profit before tax of RM291mil reflecting an increase of 5.4% from the previous year’s corresponding quarter while profit after tax grew by 4.4% to RM230mil for the quarter,” he added.
Already a subscriber? Log in
The Star Festive Promo: Get 35% OFF Digital Access
Cancel anytime. Ad-free. Unlimited access with perks.
