Nestle's share price fall on lower earnings

PETALING JAYA: Nestle (Malaysia) Bhd, whose third quarter net profit fell 25.5%, saw its share price fall 0.34% this morning.
At 11.09am, its share price was 0.34% or 3 sen lower at RM87.70 with a total of 4,200 shares traded. The stock fell 0.2% to close at RM88 yesterday with a total of 582,800 shares changing hands.
For the third quarter ended Sept 30, 2017, Nestle reported a 25.5% drop in net profit to RM119.75 million from RM160.71 million a year ago, due to an anticipated increase in prices of raw materias such as sugar, milk powder, coffee beans and the devalued ringgit.
However, revenue rose 4.77% to RM1.32 billion during the quarter from RM1.26 billion a year ago, on the back of growth achieved in domestic and exports sales, which grew by 4.2% and 6.8% respectively.
Despite the drop in earnings, the group announced an interim dividend of 70 sen for the financial year ended Dec 31, 2017.