KUALA LUMPUR: Nestle Malaysia Bhd
remains positive on its prospects despite rising food commodity costs, which will be a key challenge in the final quarter of the year as it expects the impact to be more pronounced in the coming months and especially in 2022, said CEO Juan Aranols.
"We are confident we will maintain our positive momentum and deliver another year of solid results in 2021,” said Aranols in a Tuesday statement issued in conjunction with the group's 3Q earnings result.
For the third quarter ended Sept 30, 2020, Nestle Malaysia recorded a net profit of RM148.02mil compared to RM128.39mil in the year-ago quarter as sales picked up in both domestic and export markets.
The group said revenue in 3Q rose 3.6% year-on-year (y-o-y) to RM1.44bil from RM1.39bil, driven by the group's F&B business growth of 5.5% during the quarter.
This was achieved despite the restrictions of the enhanced movement control order enforced in 3Q, which further impacted the out-of-home business under Nestle Professional.
The board of directors declared a second interim dividend of 70 sen per share, which was the same amount declared for the second interim dividend of 2020.
"Thanks to the dedicated efforts and resilience of our teams, the group delivered a strong quarter in spite of multiple operational constraints.
"We have maintained our operations safely and continued to ensure stable supply to fulfil the solid demand for our brands, while ramping up our product innovation and accelerating our environmental actions," said Aranols.
For the first nine months ended Sept 30, 2021, Nestle's turnover rose 5.6% to RM4.27bil from RM4.04bil in the same period in 2020, as domestic sales grew on the back of the retail F&B business.
Net profit over the three quarters grew 8.92% to RM457.71mil from RM420.23mil in 9M20.
"Our earnings and sales growth for the first nine months of the year reflects the resiliency of our 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," said Aranols.
In the recent quarter, Nestle introduced new product innovations including Nescafe Ready-To-Drink Limited Editions (Gula Melaka, Pandan and Ros Bandung), Nescafe Ice Caffé Latte, Kit Kat Chunky Raisin & Cookie and Nestle Onde Onde Ice Cream.
The group also accelerated the expansion of its plant-based range under Harvest Gourmet and the Dairy Free Milo and Nescafe drinks, while the nationwide roll out of Lively Tea gained momentum.
Aranols also commented on the group's sustainability efforts, which it said will continue to advance in 2021 and will further accelerate in 2022.
"We are accelerating our drive to shape a waste-free future and have expanded our Door-to-Door Collection and Recycling programme to new cities and aim to continue scaling it up to reach more communities.
In Q4 2021, we are scaling up also the planting activities under Project RELeaf, once we overcome the pandemic limitations to mobility of recent months, to fulfill our pledge of planting 3 million trees by 2023," said Aranols.
remains positive on its prospects despite rising food commodity costs, which will be a key challenge in the final quarter of the year as it expects the impact to be more pronounced in the coming months and especially in 2022, said CEO Juan Aranols."We are confident we will maintain our positive momentum and deliver another year of solid results in 2021,” said Aranols in a Tuesday statement issued in conjunction with the group's 3Q earnings result.
For the third quarter ended Sept 30, 2020, Nestle Malaysia recorded a net profit of RM148.02mil compared to RM128.39mil in the year-ago quarter as sales picked up in both domestic and export markets.
The group said revenue in 3Q rose 3.6% year-on-year (y-o-y) to RM1.44bil from RM1.39bil, driven by the group's F&B business growth of 5.5% during the quarter.
This was achieved despite the restrictions of the enhanced movement control order enforced in 3Q, which further impacted the out-of-home business under Nestle Professional.
The board of directors declared a second interim dividend of 70 sen per share, which was the same amount declared for the second interim dividend of 2020.
"Thanks to the dedicated efforts and resilience of our teams, the group delivered a strong quarter in spite of multiple operational constraints.
"We have maintained our operations safely and continued to ensure stable supply to fulfil the solid demand for our brands, while ramping up our product innovation and accelerating our environmental actions," said Aranols.
For the first nine months ended Sept 30, 2021, Nestle's turnover rose 5.6% to RM4.27bil from RM4.04bil in the same period in 2020, as domestic sales grew on the back of the retail F&B business.
Net profit over the three quarters grew 8.92% to RM457.71mil from RM420.23mil in 9M20.
"Our earnings and sales growth for the first nine months of the year reflects the resiliency of our 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," said Aranols.
In the recent quarter, Nestle introduced new product innovations including Nescafe Ready-To-Drink Limited Editions (Gula Melaka, Pandan and Ros Bandung), Nescafe Ice Caffé Latte, Kit Kat Chunky Raisin & Cookie and Nestle Onde Onde Ice Cream.
The group also accelerated the expansion of its plant-based range under Harvest Gourmet and the Dairy Free Milo and Nescafe drinks, while the nationwide roll out of Lively Tea gained momentum.
Aranols also commented on the group's sustainability efforts, which it said will continue to advance in 2021 and will further accelerate in 2022.
"We are accelerating our drive to shape a waste-free future and have expanded our Door-to-Door Collection and Recycling programme to new cities and aim to continue scaling it up to reach more communities.
In Q4 2021, we are scaling up also the planting activities under Project RELeaf, once we overcome the pandemic limitations to mobility of recent months, to fulfill our pledge of planting 3 million trees by 2023," said Aranols.
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