KUALA LUMPUR – Nestle (Malaysia) Bhd posted a net profit of RM134.53 million in the second quarter ended June 30, 2021 (Q2 2021), up 27.5% from RM105.53 million a year earlier.
The food and beverage (F&B) manufacturer said the performance was driven by the top-line acceleration and was slightly moderated by higher commodity prices and increased marketing spending compared to the movement control order period in last year.
Revenue rose to RM1.38 billion during the quarter under review from RM1.22 billion previously, mainly due to robust domestic sales growth of 15.8% on the back of the group’s strong core F&B business, which grew by 8.4& in Q2 2021, it said.
“Counting on a progressive normalisation of economic activities, the main challenge for the balance of the year will come from the impact of rising food commodity costs that we have mitigated through the first half of the year through our hedging policies.
“This impact will become more noticeable in the months ahead,” the company said in a filing with Bursa Malaysia today.
Nestle said it remains confident of delivering good sales growth and resilient bottom-line performance this year.
“Building on our good momentum, we remain focused on driving our positive trajectory in the second half of the year as we strive to deliver sustainable growth for 2021, while supporting Malaysia on the road to recovery,” it added. – Bernama, August 24, 2021
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