Targeted company: Nestle headquarters in Vevey, Switzerland. After a busy year for activist investors targeting European companies such as Nestle SA, experts say firms are becoming more eager to address shareholder concerns before they escalate into public campaigns.
KUALA LUMPUR: Nestle (Malaysia) Bhd's net profit for financial year ended Dec 31, 2018, came in 2.54% higher than in the previous year at RM658.88mil as turnover grew 4.9% to RM5.52bil.
The group declared a final dividend of RM1.40 a share, which brings total dividend payout for the year to RM2.80 a share.
According to the group, the performance growth was driven by both domestic and export sales.
"The strong Domestic performance was supported by improved consumer sentiment as well as our successful innovations and renovations.
"Our MAGGI Noodles range saw especially strong growth, mainly contributed by the launch of our Pedas Giler variety," it said.
It added that profitability remained strong due to internal efficiencies and favourability in the prices of its main traded commodities.
Also contributing to profit was a RM9.4mil one-off gain from divestment of its chilled dairy business.
Nestle said it faces some pressures from higher commodity prices and more volatile demand in its main export markets.
However, it continues to see strong demand for its brands in Malaysia and has implemented plans to continue generating sustainable and profitable growth.
"Overall, we are confident in our ability to deliver another good year of results in 2019," it said.
In the fourth quarter ended Dec 31, 2018, net profit came in 2% lower than in the previous corresponding quarter at RM123.82mil.
Revenue in 4Q was 5.2% higher at RM1.35bil as compared to RM1.28bil in 4Q'FY17.
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