Nestle (M) Bhd’s fourth quarter net profit rose 2% to RM99.79 million from RM98.3 million a year earlier. The food and beverage manufacturer said profit rise came on revenue growth during the fourth quarter ended Dec 31, 2015 (4QFY15).
In a statement to Bursa Malaysia today, Nestle said revenue was higher at RM1.2 billion versus RMI. 11 billion on domestic and export sales.
“From profit perspective, gross profit increased from RM377 million to RM460 million, a growth of 21.9% vs the corresponding period last year. Main drivers for this good profit development were the turnover increase, favourable trends in most of the raw materials, as well as diligent cost management throughout the value chain.
“The cost saving initiatives also allowed the group to increase its marketing and trade investments,” Nestle said.
Full-year (FY15) net profit climbed to RM590.73 million from RM550.38 million a year earlier. Revenue was higher at RM4.84 billion compared with RM4.81 billion in FY14.
Nestle plans to pay tax-free dividends of RM1.30 a share for 4QFY15, which is payable on June 2. The dividends comprise a final payout of RMI.IO and a special 20 sen portion.
The 4QFY15 dividends bring Nestle’s full-year payout to RM2.60 a share.
Looking ahead, Nestle foresees a challenging business backdrop amid weak consumer sentiment in Malaysia.
The company said it would manage its cost, and look for investment opportunities to grow its business.
“We will continue with our balanced business approach of and investments for the future on the other side,” Nestle said.
This article first appeared in The Edge Malaysia Market Report.