Nestlé’s 3Q profit down on raw material prices

By TMR / Pic By MUHD AMIN NAHARUL

Nestlé (M) Bhd’s net profit for the third quarter (3Q) ended Sept 30, 2017, fell 25.5% to RM119.75 million from RM160.71 million recorded a year ago, mainly due to the increase of raw material prices (sugar, milk powder, coffee beans) and ringgit devaluation.

The 3Q revenue climbed 4.8% year-on-year to RM1.32 billion on domestic and exports sales which grew 4.2% and 6.8% respectively.

Effective marketing and trade activities for selected product categories helped deliver the desired growth for domestic sales, while exports benefitted from improved growth registered by affiliated Nestlé companies especially in the Asean region, the fastmoving consumer goods multinational noted in its exchange filing yesterday.

Nestlé proposed an interim dividend of 70 sen per share for the quarter to be paid on Dec 14, 2017.

Nestlé aims to improve the efficiency of its supply chain, innovate its portfolio and intensifying trade-and-consumer promotions to raise its profitability level.