KUALA LUMPUR, July 25 (Bernama) -- Nestle (Malaysia) Bhd’s net profit almost halved to RM93.60 million in the second quarter (2Q) ended June 30, 2024, from RM180.92 million a year ago due to lower sales and its conscious choices regarding pricing.
The food and beverage manufacturer said that as Malaysian families coped with rising food prices and other basic items, it made efforts to moderate the translation of external cost increases to its final prices by absorbing part of the costs and actively mitigating cost pressure through various actions.
Meanwhile, revenue for the quarter under review fell to RM1.52 billion from a historic high of RM1.75 billion in Q2 2023, mainly driven by a decrease in domestic sales, the company said.
“(This reflected) the current environment of subdued consumer sentiment and constrained purchasing power,” it said in a filing with Bursa Malaysia today.
For the first half (1H) of the year, Nestle Malaysia’s net profit narrowed to RM289.11 million against RM378.06 million in the same period last year, while revenue slipped to RM3.31 billion from RM3.59 billion previously.
“This can be attributed to the subdued consumer sentiments and cautious spending observed during the Chinese New Year and Hari Raya festive seasons,” it said.
Nestle Malaysia has declared an interim dividend of 70 sen per share in respect of the year ending Dec 31, 2024, which will be paid on Oct 3, 2024, to shareholders whose names appear on the record of depositors on Sept 4.
Going forward, the company said challenging conditions are expected to remain throughout the third quarter and moderate progressively towards the end of the year with a return to growth latest by 1H 2025.
“We will continue to build on our fundamental strengths to continue providing Malaysians with the best range of great-tasting halal products that meet their health, nutrition and lifestyle expectations, and always anchored on our foundation of quality and safety,” it said.
At the close today, the company’s share price rose 20 sen to RM122.00 with 29,100 shares changing hands.
-- BERNAMA
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