Continued acceleration in domestic and export sales
- Turnover increased by 18.8% to RM1.64 billion in Q2 2022, on the back of higher domestic and export sales.
- Both Food and Beverage (F&B) and Out-of-Home (OOH) businesses continued to see strong momentum, supported further by the full lifting of travel restrictions.
- Net interim dividend of RM0.70 per share declared.
Petaling Jaya, July 28, 2022 - Nestlé (Malaysia) Berhad remained on a positive trajectory, delivering solid sales and profit growth for its second quarter ended 30 June 2022. This was driven by both domestic and export sales, as economic activity continued to normalise post COVID-19.
Review of Performance (Quarter 2, 2022 vs Quarter 2, 2021)
Turnover for the quarter under review reached RM1.64 billion, an 18.8% increase from RM1.38 billion in the same quarter last year. This was driven by both domestic and export sales which increased by 12.5% and 48.1% respectively. Out-of-Home channels are recovering further post lockdowns and travel restrictions.
Mr. Juan Aranols, Chief Executive Officer of Nestlé (Malaysia) Berhad, said, “With travel restrictions removed, we continued to see consumption acceleration, well supported by our demand generation activities and excellence in operational execution. This enabled us to fulfil our promise to deliver Good Food, Good Life through our wide range of products, strengthening communication and deepening our engagement with Malaysian consumers via relevant digital and on-the-ground activities.”
Committed to delivering products that address consumers’ evolving preferences, the Group launched a number of new offerings during the quarter. Catering for the growing plant-based segment, the new launches included HARVEST GOURMET Plant-Based Nuggets as well as the first-ever dairy-free coffee capsules in Malaysia, NESCAFÉ DOLCE GUSTO Almond Flat White and Coconut Flat White. Other innovations included NESTLÉ OMEGA PLUS Dark Chocolate Milk Powder, NESCAFÉ GOLD Cappuccino Ice Cream and the introduction of a premium chocolate block range under NESTLÉ Les Recettes de L’Atelier Chocolate.
Profit Before Tax (PBT) and Profit After Tax (PAT) increased to RM237.9 million and RM169.7 million respectively in Q2 2022. This was mainly due to the stronger sales and lower COVID-19 related expenses compared with the same quarter last year. This 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 PAT.
Mr. Aranols added, “While driving financial performance, we ramped up further our sustainability efforts in the quarter under review. We made further tangible progress to reduce plastic waste; we expanded our use of environmentally friendly packaging, becoming the first food and beverage company in Malaysia to implement high-quality recycled plastic resin (rPET) for our Ready-to-Drink products in plastic bottles format. In addition, we eliminated single-use plastic shrink wrap for our MILO UHT 125ml products, replacing it with 100% sustainably sourced recyclable paper, and are working to extend this innovation to the rest of our UHT range.”
Review of performance: Year-to-date 2022 vs Year-to-date 2021
For the first half ended 30 June 2022, the Group recorded higher Turnover of RM3.33 billion, up by 17.8% from RM2.83 billion in the same period last year. This was contributed by both domestic and export sales, growing at 13.7% and 36.1% respectively, supported by strong growth in both the core F&B and OOH businesses which continued to see a recovery as movement restrictions were lifted.
“Our improved results in the first half of 2022 reflect the positive consumer offtake on the back of robust demand and effective marketing support, as well as successful product innovations and portfolio renovation.”
The Group registered a higher PBT and PAT of RM526.6 million and RM374.8 million respectively for the first half of the year, up by 32.5% and 21.0% respectively. This was achieved on the back of higher sales and reduced COVID-19 related expenses, mitigating higher commodity prices, unfavourable exchange rates and the impact of Cukai Makmur (Prosperity Tax) on PAT.
As a result of the Group’s performance and its commitment to enhancing value for shareholders, the Board declared an interim dividend of RM0.70 per share for the financial year ending 31 December 2022, consistent with the first interim dividend of 2021.
Commenting on prospects for the full year, Mr. Aranols said, “Headwinds will 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. MYR depreciation vs the USD further compounds this challenge.”
“Against this challenging backdrop, we remain focused on driving sustainable growth in 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.”
“Our sustainable growth strategy is underpinned by our dedicated ESG agenda which we continue to accelerate. This includes expanding our voluntary Extended Producer Responsibility (EPR) initiatives, such as our Collection and Recycling Programme. We are on track to achieve our target of collecting 6,000 tonnes of post-consumer packaging by end-2022, of which 3,000 tonnes will be plastics. We will also continue to make a positive socioeconomic impact by supporting communities in need as part of our commitment to contribute to a brighter future for Malaysia,” concluded Mr. Aranols.
About Nestlé Malaysia
Nestlé is the world’s largest food and beverage manufacturer. Headquartered in Switzerland, Nestlé is present in more than 180 countries around the world, and our over 270,000 employees are committed to Nestlé’s purpose of unlocking the power of food to enhance quality of life for everyone, today and for generations to come. Our performance is driven by our Nutrition, Health and Wellness strategy. Nourishing Malaysians since 1912, Nestlé has earned the trust of our consumers through our quality brands and products. We are committed to improving the lives of the communities in which we operate, whilst maintaining our Halal excellence and integrity.
This is in line with our promise of delivering GOOD FOOD, GOOD LIFE to all. To learn more about how we have been nourishing Malaysians for over a century, do visit www.nestle.com.my or our Facebook page at http://www.facebook.com/Nestle.Malaysia.
For more information, please contact:
Nestlé (Malaysia) Berhad
Tel: +603 7965 6650
E-mail: [email protected]
Farah Iman or Yasmin Kadir
Tel: +603 7958 8348
E-mail: [email protected]