KUALA LUMPUR, Oct 26 — Nestle (Malaysia) Bhd’s net profit eased to RM112.65 million in the third quarter ended Sept 30, 2022 (Q3 2022) from RM148.02 million in Q3 2021, amid higher commodity prices and unfavourable exchange rates.

In a filing with Bursa Malaysia today, the food and beverage giant also attributed the lower profit to the impact of the prosperity tax.

Revenue, however, rose 17 per cent to RM1.68 billion from RM1.44 billion previously, thanks to higher domestic and export sales.

"Domestic and export sales increased 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,” it said.

Subsequently, its board of directors has declared an interim dividend of 70 sen per share for the year ending Dec 31, 2022.

Nestle said it remained in a resilient position to deliver a year of solid growth, while it continues to contend with tough market conditions defined by high commodity prices and energy costs in a challenging and volatile global environment.

"Additionally, the ringgit has depreciated to its weakest point against the US dollar in many years, further compounding the impact from imported commodities, even if this has been partially softened by hedging policy,” it said.

In this context, Nestle said it will remain focused on meeting the expectations of taste and quality of all Malaysians and nurturing the strong bonds of its brands.

"We will continue to enhance operational efficiencies to moderate the impact of external cost headwinds,” Nestle said, adding that it will continue driving its environmental, social and corporate governance agenda, with its comprehensive set of green initiatives making good progress. — Bernama