Straits Herald August 27, 2019

KEY HIGHLIGHTS 

  • Turnover up by 2% to RM1.34 billion in the second quarter and 3.4% when adjusted for divestment of Chilled Dairy business.
  • Robust domestic growth at 4.5% driven by innovation, strong festive sales and sustained consumer demand.
  • Solid Profit After Tax at RM 156.9 million, even if slightly diluted vs Quarter 2, 2018, due to phasing of marketing investment, and some unfavourable impact from exchange rates and commodity prices, both mitigated by effective hedging strategy.
  • Net interim dividend of RM0.70 per share declared. This is the same value of the interim dividend paid in 2018.

Nestlé (Malaysia) Berhad published their second quarter financial results ended 30 June 2019.

The company says that the results were driven by sustained consumer demand, supported through innovations and marketing investments. 

Nestlé recorded Operating Profit and Profit Before Tax of RM208 million and RM199 million respectively for the quarter under review. 

For its first half ended June 30, 2019, Nestlé Turnover increased to RM2.79 billion, 1.8% higher when compared to the first half of 2018 (3.5% when adjusted for the Chilled Dairy divestment). Growth is driven by strong domestic sales growing at 6.1%. 

Product innovations continued to drive domestic growth in the first half of 2019. These include launches introduced in Q1 such as NESCAFÉ Blend & Brew White Coffee, NESTUM Brown Rice, and NESCAFÉ Tarik Kurang Manis.

Nestlé recorded a slight increase in Operating Profit of RM529 million and in Profit Before Tax of RM512 million. Profit After Tax came in at RM392 million, marginally below the corresponding period in 2018, arising from the expiration of the investment incentive. 

The company’s board declared an interim dividend of RM 0.70 per share for the financial year ending 31 December 2019. This is the same value of the interim dividend paid in 2018.