KUALA LUMPUR, July 28 ― Nestle (Malaysia) Bhd’s net profit increased to RM169.65 million for the second quarter ended June 30, 2022 (Q2 FY2022) from RM134.53 million in the same period last year on stronger sales and lower Covid-19 related expenses.
In a filing with Bursa Malaysia today, the food and beverage conglomerate said that the improved performance was achieved despite the impact of increased commodity prices and unfavourable exchange rates, as well as the impact of the Cukai Makmur (Prosperity Tax) on profit after tax.
Its revenue jumped to RM1.64 billion from RM1.38 billion, driven by both domestic and export sales which increased by 12.5 per cent and 48.1 per cent, respectively, while basic earnings per share soared to 72.35 sen versus 57.37 sen.
The board of directors declared an interim dividend of 70 sen per share for FY2022, consistent with the first interim dividend of 2021.
The company expects headwinds to increase in the second half of the year with ongoing disruptions in the global supply chains and sharp increases in prices of most globally traded commodities.
Adding to this, rising inflation and the prolonged war in Ukraine will continue to put pressure on prices and may impact the availability of key food commodities.
“The ringgit depreciation versus the US dollar further compounds this challenge. Against this challenging backdrop, we remain focused on driving sustainable growth for the remainder of the year.
“Despite increased pressure on our bottom line, we will continue to cushion the impact through prudent cost optimisation and tight management of internal efficiencies,” it said.
Nestle noted that its sustainable growth strategy is underpinned by its dedicated environmental, social and governance agenda which it continues to accelerate. As at 2.04pm, shares in Nestle slipped 0.15 per cent to RM134.30 with 5,800 shares transacted. ― Bernama
