Nestle Malaysia Berhad for the second quarter ended 30 June 2022, posted a turnover of RM1.64 billion, an 18.8% increase from RM1.38 billion in the same quarter last year. This was driven by both domestic and export sales which increased by 12.5% and 48.1% respectively.
Profit Before Tax (PBT) and Profit After Tax (PAT) increased to RM237.9 million and RM169.7 million respectively in Q2 2022. This was mainly due to the stronger sales and lower COVID-19 related expenses compared with the same quarter last year. This improved performance was achieved despite the impact of increased commodity prices and unfavourable exchange rates, as well as the impact of the Cukai Makmur (Prosperity Tax) on PAT.
Review of performance (Year-to-date, 2022 vs Year-to-date, 2021)
For the first half ended 30 June 2022, the Group recorded a higher turnover of RM3.33 billion, up by 17.8% from RM2.83 billion in the same period last year. This was contributed by both domestic and export sales, growing at 13.7% and 36.1% respectively, supported by strong growth in both the core F&B and OOH businesses which continued to see a recovery as movement restrictions were lifted. Our improved results in the first half of 2022 reflect the positive consumer offtake on the back of robust demand and effective marketing support, as well as successful product innovations and portfolio renovation.
The Group registered a higher PBT and PAT of RM526.6 million and RM374.8 million respectively for the first half of the year, up by 32.5% and 21.0% respectively. This was achieved on the back of higher sales and reduced COVID-19 related expenses, mitigating higher commodity prices, unfavourable exchange rates and the impact of Cukai Makmur (Prosperity Tax) on PAT. As a result of the Group’s performance and its commitment to enhancing value for shareholders, the Board declared an interim dividend of RM0.70 per share for the financial year ending 31 December 2022, consistent with the first interim dividend of 2021
For the second quarter ended 30 June 2022, the Group registered a turnover of RM1.64 billion, 3.2% lower compared to the first quarter of 2022, mainly due to the higher sales recorded in Q1 2022 during the Chinese New Year period. Profit Before Tax was lower at RM237.9 million, mainly due to the lower sales and higher commodity prices.
Review of performance (Year-to-date, 2022 vs Year-to-date, 2021) For the first half ended 30 June 2022, the Group recorded higher turnover of RM3.33 billion, up by 17.8% from RM2.83 billion in the same period last year. This was contributed by both domestic and export sales, growing at 13.7% and 36.1% respectively, supported by strong growth in both the core F&B and OOH businesses which continued to see a recovery as movement restrictions were lifted.
Nestle’s improved results in the first half of 2022 reflect the positive consumer offtake on the back of robust demand and effective marketing support, as well as successful product innovations and portfolio renovation. The Group registered a higher PBT and PAT of RM526.6 million and RM374.8 million respectively for the first half of the year, up by 32.5% and 21.0% respectively. This was achieved on the back of higher sales and reduced COVID-19 related expenses, mitigating higher commodity prices, unfavourable exchange rates and the impact of Cukai Makmur (Prosperity Tax) on PAT.
As a result of the Group’s performance and its commitment to enhancing value for shareholders, the Board declared an interim dividend of RM0.70 per share for the financial year ending 31 December 2022, consistent with the first interim dividend of 2021.
For the second quarter ended 30 June 2022, the total turnover for the Group reached RM1.64 billion, an 18.8% increase from RM1.38 billion in the same quarter last year. This was driven by both domestic and export sales which increased by 12.5% and 48.1% respectively. Out-of-Home (OOH) channels are recovering further post lockdowns and travel restrictions.
With travel restrictions removed, we continued to see consumption acceleration, well supported by demand generation activities and excellence in operational execution.
Profit Before Tax (PBT) and Profit After Tax (PAT) increased to RM237.9 million and RM169.7 million respectively in Q2 2022. This was mainly due to the stronger sales and lower COVID-19 related expenses compared with the same quarter last year. This improved performance was achieved despite the impact of increased commodity prices and unfavourable exchange rates, as well as the impact of the Cukai Makmur (Prosperity Tax) on PAT. Variation of results against previous quarter (Quarter 2, 2022 vs. Quarter 1, 2022)
Headwinds will increase in the second half of the year, with ongoing disruptions in the global supply chains and sharp increases in prices of most globally traded commodities. Adding to this, rising inflation and the prolonged war in Ukraine will continue to put pressure on prices and may impact the availability of key food commodities. MYR depreciation vs the USD further compounds this challenge.
Against this challenging backdrop, Nestle says it remains focused on driving sustainable growth in the remainder of the year. Despite increased pressure on our bottom line, the group will continue to cushion the impact through prudent cost optimisation and tight management of internal efficiencies.
