The Group continued to support the community, protect its workforce from COVID-19 and drive growth for its brands
- Full-year Turnover increased by 5.9% to RM5.7 billion driven by both domestic and export markets.
- Full-year PAT up by 3.1% to RM569.8 million in spite of higher commodity prices and COVID-19 related expenses amounting to RM93 million.
- Q4 growth accelerated to 7.1% (RM1.5 billion) on the back of solid domestic and export demand.
- Q4 PAT at RM112.1 million was impacted by higher commodity prices and ongoing COVID-19 related expenses, as well as some flood-related costs in December 2021.
- Third interim dividend of RM1.02 per share declared.
Petaling Jaya, February 22, 2022 Nestlé (Malaysia) Berhad recorded a resilient performance for the financial year ended 31 December 2021, delivering solid Turnover growth at 5.9% to RM5.7 billion. This was largely driven by positive growth in the Group’s core F&B business in both domestic and export markets.
Review of Performance (Quarter 4, 2021 vs Quarter 4, 2020)
Turnover for the quarter increased by 7.1% to RM1.47 billion, from RM1.37 billion in the same quarter of 2020, driven by higher domestic and export sales which grew by 6.0% and 10.8% respectively. 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 levels.
Mr Juan Aranols, Chief Executive Officer of Nestlé (Malaysia) Berhad said, “We continued to keep our people and business partners safe, maintain operational continuity and fulfill the solid demand for our brands, adapting our offerings to meet the evolving needs and expectations of Malaysians. We continued to put every effort to ensure employee safety and supply continuity in a year of multiple enduring COVID related disruptions. The dedicated efforts by our teams enabled us to record another quarter of solid growth amid disruptions created by the unprecedented floods in December 2021.”
“During this time, we provided various relief efforts, including donating ready-to-eat products to more than 10,000 flood victims around the country, contributing food aid to Malaysian Red Crescent Society, Majlis Bandaraya Shah Alam and the Malaysian Relief Agency, amongst other organisations, and extending financial assistance to our own employees impacted by the floods. This is part of Nestlé’s commitment to supporting Malaysians and caring for our communities to make a positive difference.”
The Group recorded Profit Before Tax and Profit After Tax of RM146.8 million and RM112.1 million respectively in Q4 2021, slightly below Q4 2020. This was mainly due to the impact of higher commodity prices and COVID-19 related expenses, which remained sizeable in Q4 2021 (COVID testing, provision of personal protective equipment for employees and other COVID-19 safety measures to ensure infection prevention and containment on-site). 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.
The overall solid results in the quarter, combined with the Group’s commitment to deliver value to shareholders allowed the Board to declare a third interim dividend of RM1.02 per share for the financial year ended 31 December 2021, 10 sen higher than the third interim dividend of 2020.
Review of performance: Full Year 2021 vs Full Year 2020
For the full year, the Group’s Turnover rose by 5.9% to RM5.7 billion, on the back of higher domestic and export sales which increased by 6.2% and 5.0% respectively. This was driven by the Group’s core F&B business, recording a growth of 6.3%.
Mr Juan Aranols commented, “Our performance for 2021 reflects the validity of our 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.
I am particularly proud of the work done by our teams to further future-proof Nestlé Malaysia, such as the execution of important capital investment projects and the entrance into new high potential segments such as those of plant-based foods and drinks.”
“We also further ramped up our sustainability agenda, particularly action against plastic waste. We expanded our community recycling programme with our partners the Majlis Bandaraya Petaling Jaya, Majlis Bandaraya Subang Jaya and Majlis Bandaraya Shah Alam. Our reforestation programme Project RELeaf also made good progress. Despite difficulties to access planting sites amidst lockdowns, we used this time to nurture seedlings in preparation for upcoming planting activities, to realise our objective of three million trees by 2023 and we partnered with other like-minded manufacturers to establish MAREA (Malaysian Recycling Alliance Berhad), the first voluntary EPR (Extended Producer Responsibility) initiative in Malaysia.”
The Group registered a higher Profit Before Tax of RM751.8 million for the full year, up by 3.7% from the same period last year, while Profit After Tax grew by 3.1% to RM569.8 million. This was primarily due to the higher sales achieved and marketing spend efficiencies, offset slightly by increased commodity prices as well as the significant COVID-19 related expenses, which amounted to approximately RM93 million.
Prospects for 2022
Mr Juan Aranols further added, “Moving forward, continued volatility is expected as the pandemic transitions towards an endemic phase while new variants remain a global short term risk factor and global supply chains remain highly disrupted. 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.”
“Without a doubt, challenges will persist in the year ahead, including rising food commodity costs, that in some cases could translate into price increases.”
“Our sustainability agenda will make further progress in 2022. 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 CO2 equivalent every year. We have also accelerated our planting activities for Project RELeaf. In December 2021 we joined hands with Sime Darby Plantation Berhad, which will see the planting of one million trees to contribute to our 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.”
“As always, we remain committed to serving the needs of Malaysians while maintaining a strategic long-term focus to ensure sustainable growth and resilient results year in and year out,” 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 6456
E-mail: [email protected]
Farah Iman or Yasmin Kadir
Tel: (+603) 7958 8348
E-mail: [email protected]