Nestle’s FY20 dented by Covid-related expenses

KUALA LUMPUR: Nestle (Malaysia) Bhd (Nestle Malaysia) recorded a net profit for RM552.71 million for the financial year ended Dec 31, 2020 (FY20), down from RM672.91 million registered in the previous year.

Revenue also fell to RM5.41 billion from RM5.52 billion previously, the food and beverage manufacturer said in a filing with Bursa Malaysia.

The company a ributed the weaker performance mainly to the impact of Covid-19 on outof-home channels and also its RM62 million pandemic-related relief measures to preserve employee safety and operational continuity.

The previous financial year also benefi ed from the one-off gain of RM21 million related to its Petaling Jaya factory divestment, it said.

However, for the fourth quarter (4Q) ended December 31, 2020, the company’s net profit inched up to RM132.49 million compared with RM131.82 million a year earlier.

Nestle’s 4Q revenue also improved to RM1.37 billion from RM1.33 billion in the same quarter a year ago.

In a press statement, chief executive officer Juan Aranols said the accelerated roll-out of product innovations was a key growth driver during the quarter.

“Our brands have continued to gain consumers’ endorsement thanks to solid brand plans, exciting innovations and strong sales execution,” he said, adding that Nestle expected the pandemic to continue to have repercussions, especially through the first half of this year.