Nestle posts lower Q2 earnings, pays 70 sen dividend

27 Aug 2019 / 13:47 H.

PETALING JAYA: Nestle (Malaysia) Bhd’s net profit for the second quarter ended June 30, 2019 fell 5.6% to RM156.89 million from RM166.16 million a year ago, due to a planned increase in marketing investment as well as some unfavourable net impact from exchange rates and commodity prices.

However, the group recorded a 2% increase in revenue to RM1.34 billion from RM1.31 billion, thanks to strong domestic sales.

Nestle has declared an interim dividend of 70 sen per share in respect of financial year ending Dec 31, 2019 which will be paid on Oct 10, 2019 to shareholders.

For the six-month period, its net profit fell 1.3% to RM392.10 million from RM397.38 million a year ago, while revenue increased 1.8% to RM2.79 billion from RM2.74 billion.

Nestle said it remains confident in its full-year performance against a backdrop of global uncertainties and volatility.

“Our fundamentals remain strong and we continue to focus on consumer driven commercial activities to maintain our growth momentum. We have an exciting stream of new launches planned for the second half of 2019 and our teams are committed to capturing all the opportunities available to grow the business.”

Nestle said the recent introduction of the “Starbucks At Home” range in Malaysia building on Nestle’s Global Coffee Alliance with Starbucks is the most recent example of its commitment to bring to Malaysian consumers exciting experiences and to capture all opportunities for growth.

“We will continue driving efficiencies and savings to invest behind our brands and protect our margins to counter rising commodity prices and to manage input costs.”

At the noon break, Nestle’s share price gained 80 sen or 0.5% to RM149.10 on 17,500 shares done.

email blast