PETALING JAYA: Nestle (M) Bhd
is anticipating 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 said it will continue to strengthen its manufacturing infrastructure, reinforcing the company’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 Malaysians.
Releasing its results for the financial year ended Dec 31, 2024 (FY24) today, the group posted a yearly net profit of RM415.6mil, driven by a revenue of RM6.22bil.
It represented a 37% and 11.7% year-on-year (y-o-y) decline in net earnings and turnover respectively, while for the fourth quarter of 2024 (4Q24), the group saw net profit falling 72.3% to RM41.1mil as revenue slowed 12.6% to RM1.47bil.
Commenting on its 4Q24 results, Nestle Malaysia said in a filing to Bursa Malaysia that the reduction in revenue and profitability was primarily attributed to a contraction in domestic sales, which was impacted by consumer hesitancy and consumer confidence.
It added: “It is worth noting that the export business demonstrated resilience, registered a growth of 6.9%, indicating a positive performance despite challenging market conditions.”
Nestle Malaysia mentioned that the challenging consumer landscape marked by consumer hesitancy as well as by constraints in purchasing power in FY24 also affected results for the year, although export sales showed resilience with a growth of 4.9%.
It said this confirms the competitiveness of the group in the international market, benefitting amongst other factors, from being the largest halal manufacturing and export hub for the Nestle group globally.
Compared with 3Q24, Nestle Malaysia registered a marginally higher turnover from RM1.45bil, although net profit slipped from RM85.4mil mainly due to higher input costs.
Nestle declared a dividend of 79 sen for 4Q24, which brought its total dividends for FY24 to 179 sen per share.
The group said it remains focused on its mission to deliver "Good Food, Good Life" for Malaysians, with focus on core brands and new product innovations tapping into emerging trends.
“Notably, ongoing efforts to expand the product portfolio with new offerings, such as Kitkat Dark Borneo, Milo Intense Dark Chocolate, Milo Boost Up and the relaunch of its Nestlé Enercal Complete brand for health-conscious adults, as well as the Nescafé Gold Ready-To-Drink product, Maggi Syiok range and the first of its kind Kitkat Beverages Mix drink, amongst others, also demonstrated our ability to adapt to changing consumer demands,” it said.
Nestle Malaysia said it is committed to its long-term strategy, anchored in a virtuous circle where efficiencies fund brand investments to boost growth and market shares.
