Nestle Malaysia’s fourth-quarter total turnover increased by 7.1% to RM1.47 billion from RM1.37 billion as compared to the same period in 2020, it said was driven by higher domestic and export sales, which grew by 6.0% and 10.8%. However, Profit Before Tax and Profit After Tax was RM146.8 million and RM112.1 million coming in slightly below Q4 2020, which for the record was at RM167million and RM132 million. The group attributed the dip to the impact of higher commodity prices and COVID-19 related expenses, which remained sizeable in Q4 2021
Profit was also somewhat 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 the communities impacted in Klang Valley.
Despite the slight dip, Nestle was upbeat on the overall results, the Board will declare a third interim dividend of RM1.02 per share for the financial year ended 31 December 2021, 10 sen higher than the third interim dividend of 2020.
As for the full year, performance the Group’s turnover increased by 5.9% to RM5.73 billion, on the back of higher domestic and export sales which increased by 6.2% and 5.0% respectively. This was driven by the Group’s core F&B business, recording a growth of 6.3%.
The Group registered a higher Profit Before Tax of RM751.8 million for the full year, up by 3.7% from the same period last year, while Profit After Tax grew by 3.1% to RM569.8 million. This was primarily due to the higher sales achieved and marketing spend efficiencies, offset slightly by increased commodity prices as well as the significant COVID-19 related expenses, which amounted to approximately RM93 million.
For the fourth quarter ended 31 December 2021, the Group registered a turnover of RM1.47 billion, an increase of 1.9% compared to the third quarter of 2021. This was mainly driven by an increase in export sales. Profit Before Tax was lower at RM146.8 million mainly due to the impact of higher commodity prices as well as higher operating expenses. Higher operating expenses were driven by higher marketing spending, which was lower in Q3 2021 due to the EMCO restrictions at the time, as well as expenses incurred due to the flood situation in December 2021.
Moving forward, continued volatility is expected as the pandemic transitions towards an endemic phase while new variants remain a global short-term risk factor and global supply chains remain highly disrupted. Against this backdrop, Nestle said it is committed to continuing to deliver high-quality, nutritious, great-tasting products that
resonate well with Malaysians of all walks of life.
