Yes, the they posted a lower net profit, but their sales has risen by +21.29% in Q4, and +17.25 growth in sales for full year FY2010.
Looking at their financial statement, clearly shows that their gross profit still growing by ~3million in Q4, ~RM22million in FY2010 despite a tighter margin environment due to rising commodity price. The main reason why they posted lower net profit is due to higher selling and distribution expenses, means higher marketing and more money allocated to enhance their sales distribution network. To me this is short/medium term and manageable, which is inline with group target to achieve RM1billion in sales over next 5years, well 4 years left. It's normal for consumer product company to have a higher marketing expenses whenever they release a new product and brand into the market, and watch the money comes in later. (Mi Goreng Indonesia, Rice Crisp, Rio Fiesta).
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