NESTLÉ (M) Bhd posted a net profit of RM132.85 million for the fourth quarter ended Dec 31, 2022 (4Q22), up 19% from the same period a year earlier, on the back of RM1.65 billion in turnover.
For the full year, the food company posted a net profit of RM620.33 million, 9% higher than in financial year 2021 (FY21), according to its exchange filing today.
In a statement, Nestlé said it remains “very confident in the long-term prospects” of Malaysia and announced a new cycle of investment in its industrial footprint with RM1 billion capital expenditure planned for the 2023-2025 cycle.
Its 4Q22 turnover was achieved on the back of higher domestic and export sales, which grew by 10.6% and 18.3% respectively on the back of effective demand generation efforts and the normalisation of post-pandemic economic activities.
For FY22, the company posted a revenue of RM6.7 billion, a 16.2% increase from RM5.7 billion in the previous financial year.
“The rebound in our exports sales post-Covid was critical to alleviate the pressure on our margins and helped to moderate the intensity of price increases needed to offset the impact of global food commodities inflation,” said Nestlé Malaysia CEO Juan Aranols.
Moving forward in 2023, Aranols said the volatile economic environment is expected to persist due to continued inflationary pressures alongside uncertainties in commodity and currency prices, with signs of recession looming in some of the world’s major economies.
“Food commodities prices and food inflation in particular will remain high throughout the first half of 2023, but we expect a progressive improvement in the later part of the year,” he said.
The company’s board declared a third interim dividend of RM1.22 per share for the financial year ending Dec 31, 2022, 20 sen higher than the third interim dividend of 2021.
At 2.50pm today, Nestlé was trading at RM135, valuing the company at RM31.66 billion. — TMR