Nestle's Q4 2017 net profit doubles to RM133.5m from a year earlier

PETALING JAYA: Nestle (Malaysia) Bhd’s net profit doubled to RM133.5 million for the fourth quarter (Q4) ended Dec 31, 2017, from RM66.9 million in the previous corresponding quarter, attributed to phasing of marketing investment and continued sustainable cost management.
Revenue for the quarter grew 2.5% to RM1.28 billion, compared with RM1.25 billion previously.
Nestle has proposed a final dividend of RM1.35 a share in respect of the financial year ended Dec 31, 2017 which will be paid on May 31, 2018, subject to shareholders’ approval at the upcoming AGM. This would bring the total dividend payout for the year to RM2.75.
“This growth rate should be interpreted in the light of a later Chinese New Year 2018 compared to 2017; based on this planning, less Chinese New Year sales happened in Q4 2017 compared to 2016,” the group said in a filing with Bursa Malaysia.
It added that the growth momentum was also supported by domestic sales which rose by 4.5% driven by the continuous innovation and renovation initiatives as well as by successful marketing and trade promotions.
The steady domestic sales compensated the moderate slowdown in export sales which saw a contraction of 3.2% against that in Q4 2016, driven by the later phasing of Chinese New Year 2018 which led to lower export sales in Q4 2017, it added.
For the 12-month period, its net profit increased by 1.4% to RM645.8 million, from RM637 million in 2016, while revenue was up 3.9% to RM5.26 billion from RM5.06 billion.
On prospects, the group said it will continue with its strategy to strive for efficiency increases all over the supply chain and reinvest the realised improvements into the sustainable growth of the company by innovating/ renovating its portfolio and intensifying its trade-and consumer promotions.
On Bursa Malaysia today, Nestle, which was the top gainer, closed RM1.10 or 0.91% higher at RM121.50. Some 84,400 shares were traded.