KUALA LUMPUR (July 28): Nestlé (Malaysia) Bhd’s net profit rose 26.11% to RM169.65 million for the second quarter ended June 30, 2022 (2QFY22), from RM134.53 million a year ago, on the back of increased sales.

Earnings per share rose to 72.35 sen from 57.37 sen previously.

Quarterly revenue was up 18.78% to RM1.64 billion as compared to RM1.38 billion a year prior, driven by domestic and export sales increasing by 12.5% and 48.1% respectively, it said in a Bursa Malaysia filing on Thursday (July 28).

The food and beverage manufacturer noted that it continued to see consumption acceleration — in line with the removed travel restrictions — supported by its demand generation activities and excellence in operational execution.

“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 profit after tax,” Nestlé added.

The group declared an interim dividend of 70 sen per share with an ex-date of Sept 8 and payment date of Oct 6.

Meanwhile, for the first half of 2022 (1HFY22), Nestlé’s net profit increased by 21.04% to RM374.83 million versus the RM309.69 million logged in the same period last year. Revenue for the six-month period was up 17.82% to RM3.33 billion for 1HFY22 from RM2.83 billion.

“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,” it noted.

Going forward, Nestlé noted that its headwinds in the second half of 2022 are expected to increase in view of the ongoing disruptions in the global supply chains, sharp increases in prices of most globally traded commodities, rising inflation, prolonged war in Ukraine and unfavourable exchange rates.

“Against this challenging backdrop, we remain focused on driving sustainable growth in the remainder of the year.

“Despite increased pressure on our bottom line, we will continue to cushion the impact through prudent cost optimisation and tight management of internal efficiencies,” it added.

At noon break on Thursday, shares in Nestlé were down 20 sen or 0.15% at RM134.30, giving the group a market capitalisation of RM31.49 billion.