KUALA LUMPUR, Feb 23 — Nestle (Malaysia) Bhd recorded a net profit for RM552.71 million for the financial year ended December 31, 2020 (FY20), down from RM672.91 million registered in the previous year.

Revenue also fell to RM5.41 billion from RM5.52 billion previously, the food and beverage manufacturer said in a filing with Bursa Malaysia today.

The company attributed the weaker performance mainly to the impact of Covid-19 on out-of-home channels and also its RM62 million pandemic-related relief measures to preserve employee safety and operational continuity.

The previous financial year also benefitted from the one-off gain of RM21 million related to its Petaling Jaya factory divestment, it said.

However, for the fourth quarter (Q4) ended December 31, 2020, the company’s net profit inched up to RM132.49 million compared with RM131.82 million a year earlier.

Nestle’s Q4 revenue also improved to RM1.37 billion from RM1.33 billion in the same quarter a year ago.

In a press statement, chief executive officer Juan Aranols said the accelerated roll-out of product innovations was a key growth driver during the quarter.

"Our brands have continued to gain consumers’ endorsement thanks to solid brand plans, exciting innovations and strong sales execution,” he said, adding that Nestle expected the pandemic to continue to have repercussions, especially through the first half of this year.

"We expect a significant rebound in the prices of many key commodities that will create margin tensions, but we will continue to do our best to manage.

"We will drive our business with a long-term focus and deliver safe, high-quality nutritional products,” he said.

Meanwhile, Nestle will launch its plant-based meal solutions manufacturing facility in Shah Alam, one of only two in Asia, in April.

"In 2021, we expect to allocate fresh investments to further expand and upgrade our manufacturing facilities, creating new job opportunities,” he said. — Bernama