Nestle's latest product innovations in the third quarter of 2023.

KUALA LUMPUR (Oct 26): Nestle (M) Bhd net profit in the third quarter ended Sept 30, 2023 rose 18.7% to RM133.7 million from RM112.65 million on the back of a 5.3% increase in revenue to RM1.77 billion from RM1.68 billion.

In a bourse filing on Thursday, the food and drink processing group said the earnings were supported by sales growth and continuous focus on internal efficiencies and saving initiatives to offset the impact of volatile commodity prices and unfavourable exchange rates.

It added that the improved net profit was also supported by the absence of the Cukai Makmur (Prosperity Tax) imposed in 2022.

Earnings per share rose to 57.02 sen from 48.04 sen.

Nestle chief executive officer Juan Aranols said innovation was significant in the third quarter and the group further expanded its presence in the fast-growing Dairy-Free Drinks space with the launch of Nestlé Goodnes, with two initial varieties, Oat and Oat & Almond.

Nestle declared an interim dividend of 70 sen per share to be paid on Dec 14, 2023.

For the cumulative nine months ended Sept 30, Nestle’s net profit rose 5% to RM511.77 million from RM487.48 million on the back of a 7% rise in revenue to RM5.37 billion versus RM5.02 billion earlier.

In a separate statement, Nestle (M) chief executive officer Juan Aranols said innovation was significant in the quarter and the group further expanded its presence in the fast-growing Dairy-Free Drinks space with the launch of Nestlé Goodness, with two initial varieties, Oat and Oat & Almond.

“The quarter saw intense brand events and activities, with special efforts continuing to educate communities on the importance of healthy eating and active lifestyles.

“We continue to invest year in and year out to keep our industrial assets competitive and efficient, while reducing our environmental impact. Once again, this year we will see good progress in our key published measurements,” he said.

On its prospects, Aranols said despite facing an uncertain environment, notably the challenges posed by the weakened Malaysian ringgit and ongoing volatility in commodity and energy prices, the company continues to leverage its strong foundation and proven capabilities in providing relevant product offerings that meet the diverse needs of Malaysians.

“Alongside this, our ESG agenda ensures that we remain on the frontlines to help shape a greener future for Malaysia,” he said.

At the midday break, Nestle shed 1.9% or RM2.40 to RM124.20 with 22,200 shares traded.