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Nestle Malaysia posts higher net profit, revenue in nine months of FY22

KUALA LUMPUR: Nestle (Malaysia) Bhd's net profit rose 6.5 per cent to RM487.48 million in the nine months ended Sept 30 2022 from RM457.71 million a year ago. 

This was due to higher sales and lower Covid-19 expenses which helped to partially mitigate the impact of higher commodity prices, unfavourable exchange rates and the impact of Cukai Makmur (Prosperity Tax), Nestle Malaysia said. 

Group revenue for the period came in at RM5.02 billion versus RM4.27 billion last year. 

For the third quarter, the company posted a lower net profit of RM112.64 million, down 23.9 per cent year-on-yer (YoY) from RM148.02 million due to the impact of higher commodity prices and unfavourable exchange rates, as well as the quarterly impact of Cukai Makmur. 

Revenue for the quarter, however, increased 17 per cent YoY to RM1.68 billion from RM1.44 billion in Q3 2021. 

Nestle Malaysia said this was supported by an increase in domestic and export sales by 13.5 per cent and 30.2 per cent respectively as economic activities continued to stabilise both locally and globally. 

Out-of-home (OOH) channels continued to recover compared to the same period last year, which saw OOH businesses impacted by movement restrictions in certain areas of Malaysia.

For the nine-month period, its domestic and export sales grew 13.7 per cent and 33.8 per cent respectively on the back of solid growth in both the core food and beverage (F&B) and OOH segments, which continued to benefit from strong recovery following the full lifting of movement restrictions earlier in the year.

Chief executive officer Juan Aranols said the company had seen another quarter with robust demand for its portfolio of products and brands, confirming that it was well tuned with the expectations and demands of Malaysian consumers. 

"We remain committed to bring our 'Good Food, Good Life' promise to Malaysians of all walks of life, wherever they are and in whichever format they like our products."

He said with the progressive return to pre-pandemic normalcy, the company had been leveraging all opportunities to increase the reach of its core products, while continuing to lead in product innovation. 

"This included further expansion of our plant-based meal solutions with the launch of the Harvest Gourmet Plant-Based Nuggets and other innovations such as Nestle Omega Plus Dark Chocolate Milk Powder; our healthier choice Maggi Nutri-licious Noodles range; the introduction of our premium chocolate block range under Nestle Les

Recettes De L'Atelier Chocolate and KitKat Bar Dark with Southern Australian Oranges, to name a few. 

"We continue to support all these initiatives with effective marketing support with increased focus on digital. We have also seen strong demand across key export categories including Ready-to-Drink formats, foods and confectionery," he added.

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