Kuala Lumpur: Nestle (Malaysia) Bhd's net profit dropped to RM415.62 million for the financial year ending December 31, 2024 (FY2024), compared to RM659.87 million in the previous year, FY2023. The company also experienced an 11.7% decline in revenue, which fell to RM6.22 billion from RM7.05 billion.
According to BERNAMA News Agency, Nestle Malaysia cited a challenging consumer landscape as a contributing factor, with consumers showing hesitancy and constraints in purchasing power, leading to a 15.7% contraction in domestic sales. Despite these challenges, the company saw resilience in export sales, which grew by 4.9%, highlighting Nestl© Malaysia's strength in the international market as the largest Halal manufacturing and export hub for the Nestl© group globally.
In the fourth quarter of FY2024, Nestle Malaysia's net profit decreased to RM41.10 million, down from RM148.10 million in the same period the previous year. Revenue for the quarter also fell by 12.6% to RM1.47 billion from RM1.69 billion, primarily due to declining domestic sales influenced by consumer hesitancy and confidence.
Nestl© Malaysia's chief executive officer, Juan Aranols, acknowledged the complex and challenging operating environment of 2024, characterized by cautious consumer spending and hesitancy towards global brands. He emphasized the group's efforts to enhance its operational capabilities to remain competitive in the market.
Aranols expressed confidence in a return to healthy growth levels in 2025, driven by improved consumer sentiment and confidence observed towards the end of the year. He highlighted the group's extensive product portfolio, strong brand equity, and robust sales and distribution network as key factors supporting future growth.
Looking ahead, Nestle Malaysia plans to strengthen its manufacturing infrastructure, reinforcing its position as the largest Halal manufacturing and export hub for the Nestl© Group worldwide. The company aims to contribute to national food security and the wellbeing of the rakyat.
Following its FY2024 performance, Nestle Malaysia's board declared a third interim dividend of 74 sen per share.