NESTLE (4707) - NESTLE | Lower tax, strong export sales | 52.4% increase in net profit 2Q earnings | 70 sen dividend
Nestlé (Malaysia) Bhd:
1. Reported a 52.4% increase in net profit for its second financial quarter (2QFY16).
2. 2Q 2016 net profits increased to RM188.8 million from RM123.9 million in the same period 2015.
3. Turnover rose 8.2% to RM1.24 billion from RM1.14 billion last year, on an 18% growth in its exports business and 6% growth in the domestic one.
4. For the first half of its financial year ended Dec 31 2016 (1HFY16), Nestlé reported a 31.3% increase in net profit to RM409.47 million from RM311.78 million in 2015.
5. Revenue gained 5.4% during the period to RM2.55 billion, from RM2.42 billion in 2015.
6. Growth in the domestic business was driven by successful marketing and trade promotions, which also led to a further increase in the group's market shares.
7. Besides successful promotional campaigns, growth in the domestic business was due to the launch of new products, like Nestlé Omega Plus Milk with Oats, Nescafe Latte range, and Coconut Gula Melaka.
8. Its new NESPRESSO business in Malaysia, which sells high-end premium iconic coffee through the e-commerce platform, was incorporated to the group in May 2016.
The Brexit shock will continue to have some bearing to the global and local economy.
Interim dividend: 70 sen per share
Ex: Sept 6
Payable: Sep 29