Nestle (Malaysia) : 2Q Net Profit Fell 33%

By Chester Tay

Nestle (Malaysia) Bhd.'s second-quarter net profit fell 33% as Covid-19 lockdowns hit sales to hotels, restaurants and cafes.

Net profit for the April-to-June period fell to 105.5 million ringgit ($25.3 million), the food company said in a stock-exchange filing Tuesday.

Revenue dropped 8.7% to MYR1.22 billion, it said.

The pandemic also led to additional expenses to ensure worker safety.

For the first half of the year, Nestle's net profit slid 26% to MYR291.8 million, while revenue slipped 4.8% to MYR2.65 billion.

The group maintained its interim dividend payout of MYR0.70 a share.

Nestle says it is well-positioned to deliver sustainable earnings for the remainder of the year and beyond. It will continue to tread cautiously as the economic environment remains uncertain.

Write to Chester Tay at [e-mail]