PETALING JAYA: Nestle (M) Bhd recorded a resilient performance for the financial year ended Dec 31, 2021 (FY21) with net profit coming in 3.1% higher at RM569.8mil from RM552.71mil in FY20.
In a statement yesterday, the group said revenue rose 5.9% to RM5.7bil, driven by growth in its core food and beverage (F&B) business in both domestic and export markets.
For the fourth quarter (Q4) of FY21, net profit came in lower at RM112.1mil, from RM132.5mil posted in the same period a year ago, while revenue increased by 7.1% to RM1.47bil.
Nestle Malaysia said the final quarter was impacted by higher commodity prices and ongoing Covid-19 related expenses, which remained sizeable in Q4’21, as well as some flood-related costs in December 2021.
“Profit was also somewhat impacted by one-off costs incurred due to the floods, including financial assistance to affected employees, costs for repair or write-offs of damaged vehicles and trade assets as well as donations to the communities impacted in Klang Valley,” it added.
It said the group’s F&B business was a key driver, recording a strong 6.4% increase, while out-of-home channels maintained a positive trajectory following the easing of restrictions, even though still well behind pre-Covid-19 levels.
The company declared a third interim dividend of RM1.02 per share for FY21, 10 sen higher than the third interim dividend of 2020.
Commenting on the results, chief executive officer Juan Aranols said the group’s performance for 2021 reflects the validity of its strategies in a context of multiple challenges.
“First and foremost, we ensured a stable supply of high-quality products that meet the needs and expectations of Malaysians, supported by effective innovation, communication and demand generation activities. All this was done while supporting vulnerable communities via relief efforts during the year,” he added.
On 2022 prospects, Aranols said continued volatility was expected as the pandemic transitions towards an endemic phase while new variants remain a global short term risk factor. At the same time, global supply chains remain highly disrupted.
“Without a doubt, challenges will persist in the year ahead, including rising food commodity costs, that in some cases could translate into price increases.
“Against this backdrop, we are committed to continue delivering high-quality, nutritious, great-tasting products that resonate well with Malaysians of all walks of life,” he added.
This year, the group’s sustainability agenda is expected to make further progress.
“As an example, we kickstarted the year transitioning to 100% renewable electricity for all our operations in Malaysia, allowing us to reduce emissions by 75,000 tonnes of carbond dioxide equivalent every year. We have also accelerated our planting activities for Project RELeaf,” he said.
In December 2021, he said Nestle Malaysia joined hands with Sime Darby Plantation Bhd, which will see the planting of one million trees to contribute to its target of three million trees by 2023.
“We will also continue to expand our door-to-door recycling programme to reach out to more communities and we will also pioneer the implementation of environmentally friendlier packaging solutions allowing to reduce the use of virgin plastics,” he added.