KUALA LUMPUR, April 23 — Nestle (Malaysia) Bhd recorded a higher net profit of RM235 million for the first quarter (Q1) ended March 31, 2019, compared with RM231 million in the previous corresponding quarter, demonstrating the group’s strong bottom line performance.
Revenue for the quarter increased 1.6 per cent to RM1.45 billion from RM1.43 billion previously, it said in a filing with Bursa Malaysia today.
Nestle said revenue after factoring in the divestment of the chilled dairy business on Jan 1, 2019, also registered robust growth of 3.2 per cent year-on-year.
Chief executive officer Juan Aranols said revenue was driven by robust growth in domestic sales of 4.9 per cent for the quarter, fuelled by strong sales momentum during the Chinese New Year festive period.
“We continued to create new consumption opportunities and accelerated our product innovation drive in the first quarter.
“Looking ahead, we remain focused on leveraging new opportunities for our products, delivering a steady stream of innovations and constantly driving efficiencies to accelerate our growth,” he said in a separate statement.
Aranols said operating profit increased six per cent from RM303 million to RM322 million in Q1 on the back of lower operating expenses.
“This was mainly driven by decreased spending due to phasing of marketing and promotional spends, favourable commodity prices and increased efficiency in the supply chain,” he said,
On the company’s outlook, Aranols said Nestle was optimistic of sustaining the growth momentum in the year ahead, given the robust plans the company had in place to deliver sustainable and profitable growth despite some pressures on commodities and fluctuation in consumer sentiment. — Bernama
Source: The Malay Mail Online