SEARCH

Nestle Malaysia registers flattish fourth-quarter profit growth

24 Feb 2021 / 09:30 H.

PETALING JAYA: Nestle (Malaysia) Bhd’s net profit for the fourth quarter ended Dec 31, 2020 saw marginal growth of 0.5% to RM132.49 million compared with RM131.82 million for the same quarter of the preceding year, primarily due to the impacted out-of-home channels, as well as higher operational expenses to protect the safety of all employees and ensure operational continuity.

Revenue for the period rose 3.1% to RM1.37 billion from RM1.33 billion in the same quarter of the previous year.

For the full year, the group’s net profit fell 17.9% to RM552.71 million from RM672.91 million reported for 2019.

Revenue for the period dipped 1.9% to RM5.41 billion from RM5.52 billion previously.

Nestle declared a third interim dividend of 92 sen per share for FY20 ended Dec 31, 2020, bringing its total dividend for the year to RM2.32 per share.

According to its Bursa filing, the group foresees that the Covid-19 pandemic will continue to have repercussions especially through the first half of 2021.

“We also expect a significant rebound in the prices of many key commodities that anticipate margin tensions that we will continue to do our best to manage,” said Nestle’s CEO, Juan Aranols.

He said this year will see the launch of the group’s plant-based meal solutions manufacturing facility in April.

“In 2021 we expect to allocate significant new fresh investment to further expand and upgrade our manufacturing facilities, creating also new job opportunities. Last but not least, we will continue accelerating our efforts in 2021 to shape a greener and more sustainable future for all,” Aranols said.

email blast