PETALING JAYA: Nestle (Malaysia) Bhd net profit fell by 32.7% to RM105.53 million for the second quarter ended June 30, from RM156.89 million reported in the same quarter of the previous year, due to the impact of the movement control order (MCO) to its hotel, restaurant & café (Horeca) channels.
Revenue for the quarter stood at RM1.22 billion, a 8.7% decline from RM1.34 billion reported previously.
The group noted that due to the severe operational restrictions on Horeca channels during the MCO, as well as the decline in mobility of the public impacting sales in restaurants, R&R rest stops, and office-related channels, its Nestle Professional division was materially impacted as well as its ready-to-drink and some food products.
However, in-home consumption channels performed strongly, with solid gains in household penetration for brands such as Maggi, Nescafe, Milo and Nestle ice cream which helped cushion the impact from the temporary difficulties in the Horeca channels during MCO.
In the first half of the year, the group’s net profit stood at RM291.84 million, a 25.6% decline from RM392.1 million reported in the corresponding period of the previous year.
Meanwhile, its revenue for the period fell 4.8% to RM2.65 billion from RM2.79 billion reported previously.
For the period, Nestle declared an interim dividend of 70 sen per share in respect of the financial year ending Dec 31, 2020 which will be paid on Oct 8, 2020.
CEO Juan Aranols said despite a temporary contraction, the Horeca channels have been improving since the recovery MCO phase was implemented.
“Throughout the quarter, we also ensured strong sales execution and found new and innovative ways to connect with consumers. We remain confident in our ability to deliver resilient results in 2020,” he said.
He added that moving into the second half of the year, the group will be making a significant investment into its Shah Alam factory, where it is building a pioneering manufacturing facility for plant-based meal solutions.
“This is an area of high strategic priority for the Nestlé group worldwide and we are honoured to host Nestlé’s first facility in Southeast Asia, that will support growth locally and for export markets,” he said.
source https://www.thesundaily.my/business/nestle-registers-rm1055-million-net-profit-for-q2-GY3643844
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