Nestle Malaysia 3Q net profit rises 15pc to RM137.7m

KUALA LUMPUR: Nestle (Malaysia) Bhd has reported a net profit of RM137.7 million in the third quarter ended September 2018, 15.7 per cent higher than RM119.01 million in the same period a year ago.

This is mainly due to higher sales within the zero-rated Goods and Services Tax (GST) period from June to August.

Its revenue rose 8.3 per cent to RM1.4 billion in the quarter from RM1.3 billion in the corresponding period last year.

Nestle said the zero-rated GST implementation further boosted consumer spending, leading to higher demand and increased sales.

“With the move and transition to the new National Distribution Centre (NDC) in late second quarter fully completed in July, the group benefitted from the encouraging market situation,” it said in a filing to Bursa Malaysia today.

The higher turnover coupled with an improved margin contributed to an additional gross profit of almost RM100 million, it added.

Nestle said the favourable price trend in major raw materials and its continuous drive for efficiency increases along the supply chain led to this margin improvement.

The quarter also saw strong marketing and promotional activities supporting the higher sales and this was reflected in the higher operational expenses recorded, it said.

Source: NST