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Nestlé Malaysia H1 Results: Strong Market Leadership Maintained

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Quarterly results impacted by subdued consumer spending and high 2023 comparative baseline

Petaling Jaya, July 25, 2024 – Against a background defined by constrained purchasing power, subdued consumer sentiment and cautious spending throughout the Chinese New Year and Hari Raya festive seasons, Nestlé Malaysia sales reached RM3.3 billion for the first half of 2024 (H1), a correction of 8% versus the historically high record sales achieved for the first half of 2023. The cumulated sales are on par with the very solid sales achieved in the first half of 2022. Meanwhile, sales for the second quarter ended 30 June 2024 reached RM1.52 billion, down from RM1.75 billion achieved in the equivalent period of 2023.

According to Mr Juan Aranols, Chief Executive Officer of Nestlé (Malaysia) Berhad, “The current environment continues to reflect subdued consumer sentiment and constrained purchasing power impacted particularly by the cumulated inflation in food and other basic items. We recognise the significant challenges this represents for Malaysian families.”

“At Nestlé Malaysia, we remain focused on providing solid value propositions across our brands and products that meet the expectations of Malaysians, always with the highest quality and using the best ingredients. We continue to work tirelessly to improve the nutritional profile of our products and testament to this is, as an example, the Healthier Choice Logo for MILO by the Malaysian Ministry of Health. We have also brought to market a number of relevant innovations such as KIT KAT Dark Borneo, made with cocoa beans from Sabah and Sarawak, sourced via our Nestlé Borneo Cocoa initiative, in partnership with the Malaysian Cocoa Board. We take great pride in how our agricultural engagements continue to support the uplifting of local farming communities while helping us to further localise the high-quality ingredients needed to manufacture our products.”

Profitability for the quarter and for the half year, while contracting versus the high baseline periods of comparison in 2023, remained at a healthy level, with H1 Profit Before Tax at RM385 million and H1 Profit After Tax at RM289.1 million, allowing the Company to declare a first interim dividend payment of RM0.70 per share, the same level as the prior year.

When commenting on the profitability evolution for H1, Mr Aranols added, “We recognise the significant challenges that high food costs, driven by the global situation of commodity prices, create for Malaysian families. That is why we continue to make every possible effort to moderate the translation to our final prices of these external cost increases, absorbing them to the best of our ability and mitigating cost pressure through all possible actions, including the constant search for internal process efficiencies and the adoption of digital-enabled technologies across our entire value chain.” 

“Looking ahead, we expect challenging conditions to remain throughout the third quarter and moderate progressively towards the end of the year, with a return to growth latest by H1 2025. In the meantime, we will continue providing Malaysians with the best range of great tasting Halal products that meet their health, nutrition and lifestyle expectations, and always anchored on our foundation of Quality and Safety. As we have done for the last 112 years, this remains Nestlé Malaysia’s one and only truth: investing in Malaysia for the long run, creating jobs and development opportunities for Malaysians and contributing to the betterment of communities across the nation while leading the way for the industry towards a greener more sustainable future.”

“As the Malaysian Olympic Team prepares to compete in Paris, I would like to express on behalf of my over 5,500 colleagues in Nestlé Malaysia, our full support and encouragement to the athletes and our wishes of great success. Thanks also to the Olympic Council of Malaysia for our sustained partnership of over 70 years and counting. Malaysia Boleh!”


About Nestlé Malaysia
Nestlé is the world’s largest food and beverage manufacturer. Headquartered in Switzerland, Nestlé is present in more than 180 countries around the world, and our 270,000 employees are committed to Nestlé’s purpose of unlocking the power of food to enhance quality of life for everyone, today and for generations to come. Our performance is driven by our Nutrition, Health and Wellness strategy. Nourishing Malaysians since 1912, Nestlé has earned the trust of our consumers through our quality brands and products. We are committed to improving the lives of the communities in which we operate, whilst maintaining our Halal excellence and integrity. To learn more about Nestlé, do visit https://www.nestle.com.my/ask-nestle/we-are-nestle.


For more information, please contact: 

Shaheen Zaffar
Nestlé (Malaysia) Berhad
Tel: (+603) 7965 6456
E-mail: [email protected] 

Sonyia Ambi or Yasmin Kadir
acorn communications
Tel: (+603) 7958 8348
E-mail: [email protected]