Nestle Malaysia's Net Profit Falls To RM415.62 Mln In FY2024

KUALA LUMPUR, Feb 25 (Bernama) -- Nestle (Malaysia) Bhd’s net profit slipped to RM415.62 million in the financial year ended Dec 31, 2024 (FY2024) against RM659.87 million in FY2023.

At the same time, the food and beverage giant’s revenue slid by 11.7 per cent to RM6.22 billion against RM7.05 billion previously.

In a filing with Bursa Malaysia today, Nestle Malaysia said the group navigated a challenging consumer landscape, marked by consumers’ hesitancy and constraints in purchasing power, resulting in domestic sales contracting by 15.7 per cent.

However, export sales showed resilience with a growth of 4.9 per cent, confirming Nestlé Malaysia’s competitiveness in the international market, benefitting from being the largest Halal manufacturing and export hub for the Nestlé group globally.

In the fourth quarter of FY2024 (4Q 2024), its net profit tumbled to RM41.10 million, compared to RM148.10 million in 4Q 2023.

Its revenue eased 12.6 per cent to RM1.47 billion from RM1.69 billion previously, attributed to a contraction in domestic sales, which was impacted by consumer hesitancy and consumer confidence.

In a separate statement, Nestlé Malaysia’s chief executive officer Juan Aranols said the group had faced a complex and challenging operating environment in 2024, marked by cautious consumer spending and persisting hesitancy towards global brands.

He said throughout 2024, the group had further sharpened its operational edge to successfully compete and win in a highly competitive market.

“With all the actions taken, plus the signs of recovery observed in the consumer sentiment and confidence through the later part of the year, we are confident in achieving a return to healthy growth levels, in line with the historical trajectory consolidated throughout our 112 years of presence in Malaysia,” he said.

Moving forward, the group anticipates a return to healthy growth levels in 2025, driven by a broad product portfolio, strong brand equities and an extensive sales and distribution network.

“The group will continue to strengthen its manufacturing infrastructure, reinforcing Nestlé Malaysia's role as the largest Halal manufacturing and export hub for the Nestlé Group worldwide, while contributing to the nation's food security and the wellbeing of the rakyat,” it said.

Following its performance in FY2024, Nestle Malaysia’s board declared a third interim dividend of 74 sen per share.

-- BERNAMA