KUALA LUMPUR: Nestle (Malaysia) Bhd plans to allocate significant fresh investments to expand and upgrade its manufacturing facilities.
This comes after Nestle Malaysia saw its net profit fall 17.86 per cent to RM552.71 million in the year ended December 31 2020 from RM672.91 million net profit previously.
Nestle Malaysia said group revenue had fallen 1.99 per cent to RM5.41 billion from RM5.52 billion in 2019, due to Covid-19 especially during the first hafl of 2020.
For the fourth quarter (Q4), the group's net profit increased 0.5 per cent to RM132.49 million from RM131.82 million.
Group revenue edged up 3.1 per cent to RM1.37 billion in Q4 from RM1.33 billion previously.
"The group's momentum improved in the final quarter of the year, with solid topline and bottomline growth versus the same period of 2019," Nestle Malaysia said.
It said the results were driven by robust in-home consumption, export recovery and some improvement in out-of-home channels following more open operating conditions during the Recovery Movement Control Order period.
Nestle Malaysia declared a third interim dividend of 92 sen per share for 2020. This will bring total dividends for the year to RM2.32 per share, a solid dividend pay-out, despite the volatile climate of 2020.
Chief executive officer Juan Aranols said there would be exciting developments in 2021 such as Nestle Malaysia's entrance in the emerging plant-based category.
"Our plant-based meal solutions manufacturing facility, one of only two across all of Asia, is now complete and operational, and will be officially launched in April. In 2021 we expect to allocate significant new fresh investment to further expand and upgrade our manufacturing facilities, creating also new job opportunities," he said in a statement today.
Aranols expects Covid-19 to continue to have repercussions, especially through the first half of the year.
He also expects a significant rebound in the prices of many key commodities that anticipate margin tensions.
"We will drive our business with a long-term focus and always deliver safe, high-quality nutritional products meeting the taste and other expectations of all Malaysians," he said.