Nestle’s 3Q net profit up 42%

Nestle’s 3Q net profit up 42%
Tags: Nestle (M) Bhd | third quarter

Written by Financial Daily
Friday, 29 October 2010 11:30


KUALA LUMPUR: Nestle (M) Bhd’s net profit for the third quarter ended Sept 30, rose 41.9% year-on-year (y-o-y) to RM113.19 million or 48.3 sen a share while revenue gained 11.8% to RM991.08 million.

For the cumulative nine-month period, net profit totalled RM352.14 million or 150.2 sen a share and revenue was at RM3.06 billion, a y-o-y gain of 32.6% and 9.6%, respectively.

Nestle attributed the strong 3Q performance to satisfactory growth in most of its product categories, especially for Nestle liquid drinks and chilled dairy, which achieved double-digit growth.

Meanwhile, capitalising on the investments made in major production lines for coffee and coffee creamers in the past two years, Nestle said its export business also registered strong double-digit growth for 3Q.

It said, although its gross profit margin deteriorated by 110bps y-o-y as a consequence of input cost pressures and product sales mix, this effect was mitigated by less marketing and promotional activities during 3Q and the timing of some fixed overhead expenses, hence enabling profit margin before tax to still improve by 140 bps from the previous year’s 3Q.

For the remaining three months, Nestle said it would leverage on positive economic trends to continue growing both its top and bottom line. It will also increase its marketing investment to expand its market share.


This article appeared in The Edge Financial Daily, October 29, 2010.

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