KUALA LUMPUR, Aug 24 ― Nestle (Malaysia) Bhd posted a net profit of RM134.53 million in the second quarter ended June 30, 2021 (Q2 2021), up 27.5 per cent from RM105.53 million a year earlier.

The food and beverage (F&B) manufacturer said the performance was driven by the top-line acceleration and was slightly moderated by higher commodity prices and increased marketing spending compared to the Movement Control Order period in 2020.

Revenue rose to RM1.38 billion during the quarter under review from RM1.22 billion previously, mainly due to robust domestic sales growth of 15.8 per cent on the back of the group’s strong core F&B business, which grew by 8.4 per cent in Q2 2021, it said.

"Counting on a progressive normalisation of economic activities, the main challenge for the balance of the year will come from the impact of rising food commodity costs that we have mitigated through the first half of the year through our hedging policies.

"This impact will become more noticeable in the months ahead,” the company said in a filing with Bursa Malaysia today.

Nestle said it remained confident of delivering good sales growth and resilient bottom-line performance in 2021.

"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,” it added. ― Bernama