In a period marked by limited purchasing power, subdued consumer sentiment, and cautious spending during the Chinese New Year and Hari Raya festive seasons, Nestlé Malaysia achieved sales of RM3.3 billion for the first half of 2024 (H1). This represents an 8% decline compared to the record-breaking sales of the same period in 2023. However, the sales for H1 2024 align closely with the strong performance observed in the first half of 2022. For the second quarter ending 30 June 2024, sales totaled RM1.52 billion, a decrease from RM1.75 billion in the same quarter of 2023.
Mr. Juan Aranols, Chief Executive Officer of Nestlé (Malaysia) Berhad, commented, “The current economic climate is characterized by diminished consumer sentiment and constrained purchasing power, heavily impacted by cumulative inflation in food and essential items. We acknowledge the significant challenges this poses for Malaysian families.”
Mr. Aranols continued, “At Nestlé Malaysia, we remain committed to delivering substantial value through our brands and products, meeting the expectations of Malaysians with the highest quality and finest ingredients. We are dedicated to enhancing the nutritional profiles of our products, as evidenced by the Healthier Choice Logo for MILO, awarded by the Malaysian Ministry of Health. We have also introduced several innovations, such as KIT KAT Dark Borneo, made with cocoa beans from Sabah and Sarawak, sourced through our Nestlé Borneo Cocoa initiative in collaboration with the Malaysian Cocoa Board. Our agricultural engagements support local farming communities and contribute to the localization of high-quality ingredients essential for our products.”
Despite a contraction in profitability compared to the high baseline of 2023, both quarterly and half-year profits remained healthy, with H1 Profit Before Tax at RM385 million and H1 Profit After Tax at RM289.1 million. This performance enabled the company to declare a first interim dividend payment of RM0.70 per share, consistent with the previous year.
Addressing the profitability outlook, Mr. Aranols added, “We understand the significant challenges posed by high food costs driven by global commodity price trends. Therefore, we strive to mitigate these cost pressures by moderating the impact on final prices, absorbing cost increases where possible, and seeking internal efficiencies and digital innovations across our value chain.”
“Looking forward, we anticipate continued challenging conditions through the third quarter, with a gradual improvement expected by the end of the year and a return to growth by H1 2025. In the meantime, we will continue to offer Malaysians a diverse range of high-quality Halal products that align with their health, nutrition, and lifestyle needs, always adhering to our core principles of Quality and Safety. As we have for 112 years, Nestlé Malaysia remains committed to investing in Malaysia, creating jobs, fostering development, and enhancing communities, while leading the industry towards a greener and more sustainable future.”
Mr. Aranols also expressed support for the Malaysian Olympic Team, saying, “As the team prepares for the Paris Olympics, I, along with over 5,500 colleagues at Nestlé Malaysia, extend our full support and best wishes for their success. We also thank the Olympic Council of Malaysia for our enduring partnership of over 70 years. Malaysia Boleh!”
