By Chester Tay
Nestle (Malaysia) Bhd. reported a 21% decline in its first-quarter net profit due to higher commodity costs and lower sales amid the lockdown measures imposed by the government to contain the spread of the coronavirus.
Net profit fell to 186.3 million ringgit ($43.2 million), while revenue declined 1.3% on year to MYR1.43 billion, Nestle said in a stock exchange filing Tuesday.
Measures taken to protect employees' safety and ensure supply of essential foods and beverages during the movement restriction period resulted in higher expenses in the quarter, the food company said.
The company cautioned that disruption from the Covid-19 situation is expected to persist the next few months, compounded by some pressure from unfavorable exchange rates and higher prices for some commodities.
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