KUALA LUMPUR: Nestle (M) Bhd’s net profit for its third quarter ended Sept 30, 2021 rose 15% to RM148.02mil from RM128.39mil in the previous corresponding period, supported by resilient demand in its core food and beverage and exports.

       Revenue in the third quarter increased to RM1.44bil from RM1.39bil a year earlier.

       In a statement yesterday, Nestle said net profit in the third quarter was mainly driven by improved top line growth, as well as lower marketing expenses.

       The company said marketing activities were limited due to the enhanced movement control order restrictions in place during the third quarter of 2021.

       Nestle said this was comparable with the third quarter of 2020, when restrictions were eased during the recovery movement control order.

       “The improved profitability was slightly moderated by higher commodity prices and Covid-19-related expenses which remained sizeable in the third quarter of 2021, reflecting the cost of the group’s ongoing Covid-19 antigen screening programme, provision of personal protective equipment for employees and other safety measures to ensure infection prevention and containment on-site.”

       Nestle said it continued to prioritise the safety of employees and business partners during the third quarter of 2021, while ensuring supply continuity amid the operational restrictions of Covid-19 with 60% workforce limitation in factories.

       In the same statement, Nestle Malaysia chief executive officer Juan Aranols said the group maintained its operations safely and continued to ensure stable supply to fulfil the solid demand for its brands, while ramping up product innovation and accelerating environmental actions.

       “Thanks to the dedicated efforts and resilience of our teams, the group delivered a strong quarter in spite of multiple operational constraints.”For the nine-months period ended Sept 30, 2021, Nestle’s net profit grew to RM457.71mil from RM420.23mil in the previous corresponding period, while revenue grew to RM4.27bil from RM4.02bil a year earlier.

       Aranols said earnings and sales growth for the first nine months of the year reflected the resiliency of the group’s business and operations.

       “Our key priorities have remained to ensure the safety of all employees and business partners as well as ensuring continuity in supply to our customers.

       “On top of this, we have remained focused on delivering great-tasting, high quality and nutritious products that continue to resonate well with the evolving needs and expectations of our consumers.”

       Commenting on the outlook for the remainder of 2021, Aranols said Nestle remains positive on the prospects for Malaysia.

       “With the national vaccination programme having surpassed 90% of the country’s adult population, we are hopeful that Malaysia’s economic recovery will further intensify in the coming months.

       “Looking ahead, a key challenge in the fourth quarter of the year will be the rising food commodity costs.

       “We expect the impact to be more pronounced in the coming months and especially in 2022.”

       Despite this, Aranols said Nestle is confident of maintaining its positive momentum and delivering another year of solid results in 2021.

       Nestle also declared a second interim dividend of 70 sen, to be paid on Dec 15.