Nestle Malaysia registers resilient 1Q amid cautious consumer spending

KUALA LUMPUR: With the results of its first-quarter (1Q) performance in, Nestle (Malaysia) Bhd said 2024 is shaping up to be a challenging year with pressure on short-term growth as a result of inflation, foreign exchange volatility as well as heightened inflation.

The consumer group reported a 1Q net profit of RM195.51mil as compared to RM197.15mil, representing an earnings per share of 83.37 sen compared to 84.07 sen.

It said turnover during the quarter in review was RM1.78bil, 3.2% lower than RM1.84bil in the first quarter of last year as domestic sales declined slightly by comparison.

“Amidst a challenging environment where consumers remained cautious with their spending and intense competitive landscape, we continued to focus on delivering high quality products, made in Malaysia, by Malaysians, to meet Malaysians’ expectations for taste, convenience, nutrition and value.

"With close proximity between Chinese New Year and the start of Ramadan, our teams remained laser focused in ensuring effective commercial execution, relevant communication and operational excellence across all channels," said Nestle Malaysia CEO Juan Aranols in a statement.

He referred also to the group's progress in its environmental, social and governance agenda.

"An important milestone was the official launch of our biomass boiler in our Chembong Factory in Negeri Sembilan, Nestlé’s largest MILO plant in the world, allowing to decrease the factory’s greenhouse gas emissions by 14,000 tonnes of CO2 equivalent annually,” he said.

Nestle embarked on other initiatives such as providing school essentials to 2,600 primary school students across the country; or the multiple food donations funded by its different brands.

The group also lent its support to the Palestine and Syrian refugees in Malaysia in collaboration with Malaysian Humanitarian Aid and Relief (Mahar).

"We remain fully focused, as we have done through our 112 years of presence in the nation, to meet the needs and expectations of Malaysians, while being a responsible and proactive partner to bring positive societal change at multiple levels contributing to fulfil our mission of enhancing the quality of life and the transition to a more sustainable future for the benefit of all Malaysians," said Aranols.

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Nestle , consumer , inflation , F&B , Juan Aranols


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