KUALA LUMPUR: Nestle (Malaysia) Bhd net profit for the second quarter ended June 30, 2011 rose 6.4% to RM106.55 million from RM100.15 million a year earlier, driven by both domestic and export sales.
Revenue for the quarter rose to RM1.16 billion from RM1.05 billion in 2010. Earnings per share was 45.44 sen while net assets per share was RM2.58.
Nestle declared an interim dividend of 55 sen per share, tax exempt under single-tier tax system.
For the six months ended June 30, Nestle's net profit rose to RM259.23 million from RM238.95 million, on the back of revenue RM2.34 billion.
Reviewing its performance, Nestle said on Thursday, Aug 18 new products introduced towards the end of the last quarter such as MILO Sejuk and NESTEA were showing good results in the market.
It said operating profit increased by 6.5% to RM132.2 million.
'Higher raw material costs, coupled with strong promotional and marketing investments reduce slightly the percentage of profit margin.
'Lower financing cost offset by a higher effective tax rate drove the net profit to show a similar percentage margin trend,' it said.
On its outlook, Nestle said the prospects for the global economy were uncertain due to unfavourable economic condition in both Europe and the United States.
The sharp increase in the global commodity prices and the Malaysian government's move to gradually reduce food and fuel subsidies was putting pressure on the group's input costs, it said.
'The group will continue to closely monitor the development of commodity prices, leverage operational efficiencies and cost savings initiatives to minimise or avoid passing on price increases to consumers.
'After the strong performance in the first half, the group will continue to intensify its marketing investment in line with Nestle's objective of being the leader in Nutrition, Health & Wellness, as well as an industry benchmark for its financial performance and being trusted by all stakeholders,' it said.
Revenue for the quarter rose to RM1.16 billion from RM1.05 billion in 2010. Earnings per share was 45.44 sen while net assets per share was RM2.58.
Nestle declared an interim dividend of 55 sen per share, tax exempt under single-tier tax system.
For the six months ended June 30, Nestle's net profit rose to RM259.23 million from RM238.95 million, on the back of revenue RM2.34 billion.
Reviewing its performance, Nestle said on Thursday, Aug 18 new products introduced towards the end of the last quarter such as MILO Sejuk and NESTEA were showing good results in the market.
It said operating profit increased by 6.5% to RM132.2 million.
'Higher raw material costs, coupled with strong promotional and marketing investments reduce slightly the percentage of profit margin.
'Lower financing cost offset by a higher effective tax rate drove the net profit to show a similar percentage margin trend,' it said.
On its outlook, Nestle said the prospects for the global economy were uncertain due to unfavourable economic condition in both Europe and the United States.
The sharp increase in the global commodity prices and the Malaysian government's move to gradually reduce food and fuel subsidies was putting pressure on the group's input costs, it said.
'The group will continue to closely monitor the development of commodity prices, leverage operational efficiencies and cost savings initiatives to minimise or avoid passing on price increases to consumers.
'After the strong performance in the first half, the group will continue to intensify its marketing investment in line with Nestle's objective of being the leader in Nutrition, Health & Wellness, as well as an industry benchmark for its financial performance and being trusted by all stakeholders,' it said.
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