KUALA LUMPUR: Nestle Malaysia Bhd recorded a higher RM149 million net profit for its third quarter (Q3) ended September 30 2019.
This was eight per cent more than the RM138 million net profit registed a year ago.
Nestle Malaysia, in an exchange filing today, said the results were delivered by strong domestic sales as well as successful efforts to drive efficiencies and savings against a backdrop of unfavourable commodity costs and exchange rates.
“Domestic sales growth remained robust at 1.7 per cent after adjustment for the divestment of the chilled dairy business, comparing favourably against the exceptionally strong sales in Q3 2018, during the 0 per cent Goods and Services Tax (GST) period,” it said.
Nestle Malaysia’s turnover for the quarter eased 2.2 per cent to RM1.4 billion, reflecting a challenging year for exports against a backdrop of global uncertainties.
Chief executive officer Juan Aranols said the strong profit growth was driven by robust domestic sales and its steady focus on driving efficiencies.
“Growth in our domestic sales was driven by strong sales execution, the continuing success of product innovations and strong marketing support.
“New innovations launched during the quarter under review continue to resonate well with our consumers, enabling the group to further reinforce our leading market share in many key categories,” Aranols said in a separate statement.
Despite subdued consumer sentiment, domestic sales remained an engine for Nestle Malaysia’s growth during a nine- month, with an increase of 2.6 per cent or a robust 4.6 per cent when excluding the impact of a chilled dairy divestment.
Its total turnover grew 0.4 per cent to RM4.9 billion, or 2.1 per cent net off the chilled dairy business.
Nestle Malaysia declared a second interim dividend of 70 sen per share for the year ending December 31 2019.
Aranols expects the company to deliver solid results for the year.
It will focus on meeting current and future needs, as well as the expectations of Malaysian consumers, to maintain the growth momentum and deliver value to all stakeholders.