Nestlé Malaysia’s Q1 net profit rises 17%
PETALING JAYA: Nestlé (Malaysia) Bhd’s net profit for the first quarter ended March 31, 2022 rose 17.1% to RM205.18 million from RM175.16 million a year ago supported by stronger sales coupled with lower Covid-19-related expenses compared with the previous corresponding period.
Its revenue increased 16.9% to RM1.69 billion from RM1.45 billion in the previous year’s corresponding quarter, driven by both higher domestic and export sales, which grew 14.9% and 25.3% respectively. The group’s core food and beverage (F&B) business and the out-ofhome business under Nestlé Professional benefited from increased mobility and reopening of hotel, restaurant and café channels post-lockdown.
The improved results were achieved despite the impact of increased commodity prices, as well as the impact of Cukai Makmur (Prosperity Tax) on its profit.
CEO Juan Aranols said as Nestlé marks its 110th year in Malaysia, it sees solid consumption momentum, supported by demand generation efforts as well as the solid operational execution by its factories, logistics and sales teams.
“We remain focused in delivering high-quality, great-tasting and nutritious products that meet the diverse needs of Malaysians, alongside ensuring excellence in consumer communications, digital engagement and in-store activities.”
On its 2022 outlook, Aranols said it is confident of sustaining growth momentum over the year, even if it sees growth levelling down from current high levels in the coming quarters.
The global environment remains challenging, he said, with widespread inflation gaining traction, aggravated by the war in Ukraine, having a further impact on prices and availability of key food commodities such as wheat, barley and sunflower oils.
“Overall, 2022 is shaping as a year of solid growth in the top line and some pressure on the bottom line as we do our best to balance the tensions on our cost value chain with internal efficiencies and moderate price increases.
“Despite the foreseeable hurdles, we aim to continue leveraging on all possible opportunities to drive another year of solid and resilient results,” said Aranols.