KUALA LUMPUR: Nestle (Malaysia) Bhd’s net profit fell 10.3% to RM160.71 million or 68.53 sen a share in the third quarter ended Sept 30, 2016 (3QFY16), from RM179.16 million or 76.4 sen a share a year ago, as it ploughed back profits into the company to support new products and intensify its trade and consumer promotions in order to continue to strengthen its market share.

The food giant’s revenue increased 3.7% to RM1.26 billion in 3QFY16, compared with RM1.22 billion in 3QFY15, contributed by its domestic business which rose 3.5% year-on-year (y-o-y), as well as the export business which grew 4.5% y-o-y.

“During the third quarter, the group continued its innovation and renovation drive by launching successfully many new products such as Nestle Bliss Go, Nestum Banana Caramel, Nescafe Tarik Ready-to-Drink and Maggi Oatmee,” said Nestle Malaysia in a filing with Bursa Malaysia yesterday.

The group also declared a second interim dividend of 70 sen per share amounting to RM164.15 million for FY16, payable on Dec 2.

For the cumulative nine months ended Sept 30, 2016 (9MFY16), Nestle Malaysia reported a 16.1% increase in net profit to RM570.19 million or 243.15 sen a share, from RM490.94 million or 209.36 sen a share, driven by higher turnover, favourable commodity prices, as well as efficiency increases in factories and in the overall supply chain.

The group also attributed the increased earnings to a lower effective tax rate in 9MFY16.

Revenue rose 4.8% to RM3.81 billion from RM3.64 billion, supported by higher domestic sales and strong growth in the export business.

On its prospects, Nestle Malaysia said it will continue with its “fuel the growth” strategy. “This entails striving for efficiency increases all over the supply chain and reinvesting the realised improvements in sustainable growth of the group by innovating or renovating our portfolio and intensifying our trade and consumer promotions.”