KUALA LUMPUR : Nestle (Malaysia) Bhd's net profit rose 27.48 per cent to RM134.53 million in the second quarter (Q2) ended June 30, 2021 from RM105.53 million a year ago.
Nestle Malaysia attributed this to the increase in sales of its food and beverage products.
Group revenue rose 13.2 per cent to RM1.38 billion in Q2 2021 from RM1.22 billion, driven by robust domestic sales growth of 15.8 per cent.
"The Out-Of-Home business under Nestle Professional saw a solid improvement against very low sales in the same quarter last year when the early lockdowns had the most dramatic impact on this sector of activity.
"The focus on supplying the local market amidst operational restrictions had some impact on the export business, which only grew by 2.5 per cent in Q2 2021," it said.
Nestle Malaysia chief executive officer Juan Aranols said the results confirmed the resiliency of the company's model based on driving sustainable growth year after year, boosted by efficiencies, brand support and innovation.
Aranols said counting on a progressive normalisation of economic activities, the main challenge for the balance of the year would come from the impact of rising food commodity costs that the company had mitigated through the first half of 2021 with its hedging policies.
"This impact will become more noticeable in the months ahead. That being said, we remain confident to deliver another solid year in 2021, with good sales growth and resilient bottom-line performance.
"Building on our good momentum, we remain focused on driving our positive trajectory in the second half of the year as we strive to deliver sustainable growth for 2021, while supporting Malaysia on the road to recovery," he said.