Nestle Malaysia’s 3Q net profit down to RM128.39m

by BERNAMA / pic by MUHD AMIN NAHARUL

NESTLE (Malaysia) Bhd’s net profit for the third quarter ended Sept 30, 2020 declined to RM128.39 million from RM148.99 million in the same quarter last year, dragged down by hotel, restaurant and café (HORECA) channels.

It was also affected by higher operational expenses as it was necessary to ensure segregation at the workplace and preserve safety and operational continuity during the COVID-19 pandemic.

Similarly, revenue down to RM1.39 billion from RM1.40 billion in the same period last year, the group said in a filing with Bursa Malaysia.

The group said food and beverage business was a key contributor, recording a 2.2 per cent growth, driven by strong in-home consumption and a positive recovery of exports.

However, HORECA channels remained below the previous year baseline, but gained momentum progressively following the easing of operational constraints under the Recovery Movement Control Order (RMCO) since mid-June.

“While challenges are expected to persist in the near-term, we firmly believe longer-term prospects are positive and we will continue to work hard to win the confidence and trust of Malaysians every day,” the group said.

It also remains committed to continue driving shareholder values and declared a second interim dividend of 70 sen per share, reflecting confidence in delivering another year of resilient results.