Nestle’s Q2 net profit eases to RM105.53m

by BERNAMA/ pic by MUHD AMIN NAHARUL

NESTLE (Malaysia) Bhd posted a lower net profit of RM105.53 million in the second quarter ended June 30, 2020 from RM156.89 million in the same quarter last year.

The company said profit was impacted by the hotel, restaurant and cafe channels (HORECA) situation under the Movement Control Order (MCO) and significant COVID-19-related expenses.

The profit also benefitted from a one-off gain of RM19.7 million arising from the divestment of the Petaling Jaya factory.

Its revenue dropped to RM1.22 billion from RM1.33 billion previously, Nestle noted in a statement.

This was mainly attributed to severe operational restrictions on HORECA channels during the MCO, as well as to the decline in mobility of the public, impacting sales in restaurants, highway rest stops and office-related channels.

However, in-home consumption channels, which performed strongly, helped cushion the impact, with solid gains in household penetration for brands.

The company declared an interim dividend of 70 sen per share for the financial year ending Dec 31, 2020, the same level as the first interim dividend of 2019.

On the second half, chief executive officer Juan Aranols said Nestle will continue to invest in the future, as reflected by its robust plans and expansion into new categories with high-growth potential.

“We can now disclose that a significant investment is going into our Shah Alam factory where we are building a pioneering manufacturing facility for Plant-Based Meal Solutions.

“This is an area of high strategic priority for the Nestle Group worldwide and we’re honoured to host Nestle’s first facility in Southeast Asia, that will support growth locally and for export markets,” he said.