Nestle's FY23 net profit rises to RM659.87mil on higher sales

KUALA LUMPUR: Nestle (Malaysia) Bhd’s net profit for the financial year ended Dec 31, 2023 (FY2023) rose to RM659.87 million from RM620.33 million in FY2022, contributed by higher sales and its continuous focus on driving internal efficiencies and saving initiatives.

This has helped to alleviate the impact of unfavourable commodity prices and exchange rates.

It said the improved profit after tax was also supported by lower taxes in the absence of the Prosperity Tax imposed in 2022, Nestle said in a filing with Bursa Malaysia today.

Similarly, its revenue jumped by 5.8 per cent to RM7.05 billion from RM6.66 billion previously, driven by higher domestic sales fuelled by resilent consumer demand.

The food and beverage (F&B) manufacturer said the resilient momentum it has achieved reflects the hard work and dedication of its team, always committed to deliver on the promise of Good Food, Good Life for all Malaysians.

"Our core brands continued to drive growth, while our new innovative products are tapping on emerging growth trends to create growth platforms for the future.

"We renew constantly our full commitment to live up to the trust that Malaysians have placed in us for over 112 years, which was demonstrated by our solid investment plans, supporting local employment and uplifting communities as well as contributing to the economic development and food security of Malaysia,” it added.

Meanwhile, the board has declared a third interim dividend of RM1.28 per share for the FY2023, six sen higher than the third interim dividend of 2022, to be paid on May 16, 2024 to shareholders whose names appear on the record of depositors on April 18, 2024.

For the fourth quarter ended Dec 31, 2023 (4Q 2023), Nestle’s net profit increased to RM148.10 million against RM132.85 million in 4Q 2022, while revenue went slightly higher to RM1.69 billion versus RM1.65 billion previously.

On prospects, Nestle said challenges such as currency and commodity price fluctuations may persist, as well as the more subdued consumer sentiment and the impact on the purchasing power following the cumulated inflation of the last couple of years.

Nestle said it will continue delivering high quality, great tasting nutritious products that meet the needs and expectations of Malaysians while making a positive difference for society.

"Our investment plans, as planned earlier, are progressing and will set the foundation for further growth in the years to come,” it added.

For FY2024, the company said it is again confident in delivering a resilient performance and meeting the expectations of its shareholders. - Bernama

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Nestle , Prosperity Tax , consumer , F&B


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