Nestle is among the eight companies which Maybank IB is issuing the call warrants over the shares.
KUALA LUMPUR: Nestle (Malaysia) Bhd is looking at increased earnings this year on the back of a stronger ringgit, lower commodity prices and improved efficiency at its factories.
The group said it expects its gross margin to come close to FY16 levels of nearly 50%.
CFO Martin Peter Krugel told a press conference on Wednesday that they were confident of delivering another strong set of results this year in view of the favourable conditions.
"We see our gross margins improving due to these factors - commodity prices have started to decrease and the ringgit has appreciated.
"We have also been able to further increase our efficiency at our factories and in the supply chain.
"This is why we are confident our gross margins will improve compared to 2017 and come quite close to the level we had in 2016," he said.
In FY17, the group saw its revenue increase 3.9% to RM5.3bil and profit after tax rise 1.4% to RM646mil.
Krugel added that the improved margins would enable the company to further invest in new products, marketing and trade promotions and this would in turn fuel growth.
The group said it is setting aside RM180mil in capex this year to spend on several focus areas such as culinary and confectionary products.
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