The research house said 9M19 results came in within both its and market expectations with core net profit and revenue growth being relatively flat.
"As the results were broadly in line with our expectations, we leave our earnings estimates unchanged," it said.
Nestle reported 9M19 organic revenue growth after adjusting for its chilled dairy business divestment of 2.1%, driven by robust domestic sales growth underpinned by its new product launches.
It also reported weaker export sales, which partially offset the revenue growth.
EBIT margin also stayed firm as management drove operating efficiency gains, despite unfavourable forex and commodity price movements weighing on gross margin, said Affin Hwang.
For 3Q19, core net profit grew 8.6% q-o-q in tandem with higher revenue growth of 4.9% q-o-q, reflecting the group’s resilient domestic sales performance.
Moving into 4Q19, management remains committed to upholding the group’s margins through further opex savings, while banking on new product launches under the Nescafe, Milo and Drumstick brands to continue driving sales growth.
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