by FAYYADH JAAFAR / pic by TMR FILE
NESTLE Malaysia Bhd’s earnings improved by 3% year-on-year (YoY) to RM569.81 million in the financial year 2021 (FY21) on higher sales and marketing spend efficiency.
Citing the festivities and economic cycles, the fast-moving consumer goods multinational recorded an increase in both domestic and export sales, which grew by 6.2% and 5% respectively in FY21.
In a Bursa Malaysia filing yesterday, Nestle posted a 5.9% YoY rise in revenue for FY21 to RM5.73 billion on the back of higher domestic and export sales despite the problems caused by the Covid-19 pandemic.
Basic earnings per share for FY21 stood at 242.99 sen of which 242 sen was paid as dividend.
For the fourth quarter ended Dec 31, 2021, (4Q21) Nestle registered a lower net profit of RM112.1 million versus RM132.49 million profit in 4Q20 due to the impact of higher commodity prices and Covid-19-related expenses, which remained sizeable during the quarter.
Revenue for the quarter rose 7% YoY to RM1.47 billion while earnings per share amounted to 47.8 sen a share. The company proposed an interim dividend of RM1.02 a share, payable on May 19.
The 4Q profit was also 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 communities impacted in the Klang Valley.
“Our performance for 2021 reflects the validity of our strategies in the context of multiple challenges. 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,” the company’s filing stated.
Nestle added that it is making capital investment into new high-potential segments such as those of plant-based foods and drinks.
It has also ramped up its sustainability agenda, particularly action against plastic waste through its community recycling programme with partners like Majlis Bandaraya Petaling Jaya, Majlis Bandaraya Subang Jaya and Majlis Bandaraya Shah Alam. It is also undertaking a reforestation programme, Project RELeaf which has made good progress.
“Despite difficulties accessing 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 Bhd), the first voluntary EPR (extended producer responsibility) in Malaysia,” the company added.