Nestlé Malaysia Reports Strong Performance in 2023, Focusing on Sustainable Growth and Community Impact
Nestlé Malaysia has announced robust financial results for the fiscal year ending on December 31, 2023, marked by increased turnover and profitability driven by strong domestic sales growth. These results underscore the resilience of the company’s brand and product portfolio, which continue to adapt to the changing needs and preferences of Malaysian consumers.
Continuing its commitment to invest in Malaysia and create employment opportunities, Nestlé Malaysia will further enhance and expand its industrial footprint in 2024 as part of its ongoing RM1 billion capital expenditure plan for the period spanning 2023 to 2025.
Review of Q4 2023 Performance: In the fourth quarter of 2023, the Group achieved a turnover of RM1.69 billion, representing a 2.3% increase compared to the same period last year. This growth was primarily driven by strong domestic demand, partially offset by adjustments in export sales. Despite higher operating expenses, Profit Before Tax (PBT) slightly decreased to RM176.7 million, while Profit After Tax (PAT) rose to RM148.1 million, mainly due to the absence of the Prosperity Tax imposed in 2022.
Review of Full Year 2023 Performance: For the full year 2023, Nestlé Malaysia reported a turnover of RM7.05 billion, up by 5.8% from the previous year, fueled by resilient domestic sales. Although export sales were slightly lower compared to 2022, the company’s core brands continued to drive growth, supported by innovative product offerings catering to emerging consumer trends.
The Group achieved a Profit Before Tax (PBT) of RM879.1 million and a Profit After Tax (PAT) of RM659.9 million for the year, demonstrating its focus on internal efficiencies and cost-saving initiatives amid challenging market conditions.
In line with its commitment to delivering value to shareholders, the Board declared a third interim dividend of RM1.28 per share for the fiscal year ended December 31, 2023, reflecting a 6 sen increase compared to the previous year.
Environmental, Social, and Governance (ESG) Efforts: Nestlé Malaysia continued its efforts in sustainability and community engagement throughout 2023. Key initiatives included the successful planting of 1.5 million trees under Project RELeaf, expansion of community recycling programs, and extension of the Farmer Connect Programme to East Malaysia.
Looking Ahead to 2024: Despite ongoing challenges such as currency fluctuations and subdued consumer sentiment, Nestlé Malaysia remains optimistic about its prospects for 2024. The company is committed to delivering high-quality products that meet consumer needs while contributing positively to society and advancing sustainability goals.
In conclusion, Nestlé Malaysia is confident in its ability to maintain resilient performance and meet shareholder expectations in the coming year, building upon its strong foundation and long-standing presence in Malaysia.
