The food and beverage giant, which returned a net profit of RM148.02 million in the same period last year, cited higher commodity prices as a result of unfavourable exchange rates as well as the impact of the prosperity tax as factors that led to the decline.

However, Nestle said in a filing with Bursa Malaysia today, its revenue rose 17% to RM1.68 billion for the quarter, from RM1.44 billion previously, thanks to higher domestic and export sales.

“Domestic and export sales increased by 13.5% and 30.2% respectively, as economic activities continued to stabilise both locally and globally,” the company said.

It said other sales channels, which had been hit by the Covid-19 restrictions on movements, were also on the recovery path.

Its board of directors has declared an interim dividend of 70 sen per share for the year ending Dec 31.

Nestle said it remained in a resilient position to deliver a year of solid growth, while it continues to contend with tough market conditions defined by high commodity prices and energy costs in a challenging and volatile global environment.

“Additionally, the ringgit has depreciated to its weakest point against the US dollar in many years, further compounding the impact on the cost of imported commodities, even if this has been partially softened by hedging policy,” it said.

In this context, Nestle said, it will remain focused on meeting the expectations of taste and quality of all Malaysians and nurturing the strong bonds of its brands.

“We will continue to enhance operational efficiencies to moderate the impact of external cost headwinds,” Nestle said, adding that it will continue driving its environmental, social and corporate governance agenda, with its comprehensive set of green initiatives making good progress.