KUALA LUMPUR, Nov 7 ― Nestle (Malaysia) Bhd’s pre-tax profit for the third quarter ended Sept 30, 2017, declined to RM145.08 million from RM185.24 million in the same period last year.

Revenue, however, rose to RM1.32 billion from RM1.26 billion previously, supported by domestic and exports sales which grew by 4.2 per cent and 6.8 per cent respectively, it said in a filing to Bursa Malaysia today.

It said the reduction in pre-tax profit was mainly driven by the anticipated increase of raw material prices such as sugar, milk powder, coffee beans and the ringgit devaluation.

For the nine-month period, the company’s pre-tax profit eased to RM648.36 million year-on-year (y-o-y) from RM685 million last year, while revenue increased to RM3.97 billion from RM3.81 billion previously.

Chief Executive Officer, Alois Hofbauer, in a separate statement, said in anticipation of continuing challenges from external headwinds, the company had undertaken diligent cost management that helped to cushion the effect.

"Proactive measures were undertaken to cushion the anticipated impact of rising costs, such as increasing internal efficiency, diligent cost management and the phasing of strategic marketing investments,” he said.

On prospects, he said the company would continue to strive for efficiency optimisation across its value chain and reinvest the realised improvements for its sustainable growth, while simultaneously focusing on product innovation as well as intensifying trade and consumer promotions.

"We are confident that through our balanced approach of proactive cost management, as well as effective trade and marketing investments, we can achieve a solid profit level for 2017,” he added.

In line with the group’s commitment to enhancing shareholder value, the board has declared a second net interim dividend of RM0.70 per share for the financial year ending Dec 31, 2017. ― Bernama