For the first quarter ended 31 March 2023, the Group delivered a higher turnover of RM1.84 billion, an increase of 8.8% from RM1.69 billion in the same quarter of 2022. For the quarter under review, the Group recorded a Profit Before Tax and Profit After Tax of RM262.3 million and RM197.1 million respectively, slightly lower compared with the high profits achieved in the same quarter last year, before the escalation of commodity costs that followed from Q2 2022.
Nestle said this was driven by improved domestic and export sales, which increased by 10% and 4% respectively on the back of a strong baseline in the previous year.
The groups added that performance was very solid both in the core Food & Beverage (F&B) business as well as the Out-of-Home business under Nestlé Professional, which continued to be on a positive post-pandemic trajectory. However, it noted, Profit After Tax decreased by 3.9% due to higher commodity prices and unfavourable exchange rates, with various cost mitigation measures implemented to minimize the impact on consumers and to protect margins.
Variation of results against previous quarter (Quarter 1, 2023 vs. Quarter 4, 2022)
For the first quarter ended 31 March 2023, the Group registered a turnover of RM1.84 billion, 11.8% higher compared to the fourth quarter of 2022, mainly due to higher sales during the Chinese New Year period. Profit Before Tax was higher at RM262.3 million, mainly due to the higher sales and lower operating expenses.
Nestle in its statement said while headline inflation has started to decline, it is still elevated, compounded by uncertainties in commodity prices and currency rates. Recent disruptions in financial markets have also exposed global vulnerabilities, with some downside risks for the global economy affecting potentially the dynamism of our export markets.
Over the long-term, the food giant remains confident in the prospects of Malaysia, as demonstrated by our next wave of capital investments, with RM1.0 billion planned for the 2023 – 2025 cycle.
