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Nestlé Malaysia Remains Resilient in a Challenging Consumer Context

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Company protects its market leadership, scales up innovation and continues extensive community support programmes

Petaling Jaya, October 24, 2024 - Nestlé Malaysia reported a turnover of RM4.75 billion for its first 9M ended 30 September 2024. This represents a decline of 11.4% vs the first 9M of 2023, which marked a historically high level of sales. Exports continued to show strong dynamism while local sales continued to be impacted by consumer hesitancy amidst cautious spending and affordability concerns. Beyond the current headwinds, Nestlé Malaysia reiterates its confidence in returning to healthy growth latest by end of H1 2025, on the base of the Company’s solid fundamentals and signs of progressive improvement in overall consumer confidence.

Mr. Juan Aranols, Chief Executive Officer of Nestlé (Malaysia) Berhad, said, "Our focus on delivering high-quality, nutritious and great-tasting Halal products that offer value to consumers allows us to protect our market leadership and to remain resilient in a very challenging external context. We remain attuned to evolving consumer trends and ensure that all our core brands and products continue to meet the expectations of Malaysian consumers and to win in the marketplace. On the innovation front, we have introduced new products that resonate strongly with Malaysians, and we observe opportunities also to expand our export sales. Internally, we are advancing an intense programme of efficiencies enabled by rapid digitalisation that is unlocking resources at different levels, helping to support brand investments while protecting our margins.”

Nestlé Malaysia's product innovations remain strong. In addition to the products pipelined in earlier quarters such us KIT KAT Dark Borneo, MILO Intense, MILO Boost Up and the relaunch of its health conscious adults targeted ENERCAL brand, the company recently added NESCAFÉ GOLD to its range of Ready-To-Drink products; introduced the MAGGI Syiok range of premium noodles and launched the KIT KAT Beverages Mix drink (the first of its kind worldwide and Malaysian-made), to name a few. Nestlé brands have engaged extensively also in relevant consumer campaigns achieving in some cases historical results. As an example, the NESTLÉ OMEGA PLUS Walk a Million Miles campaign, gathered over 30,000 participants (the highest ever number), who together walked over 2.1 million miles, illustrating the efforts made by the brand to create awareness on heart health and proactive cholesterol management amongst Malaysians.

For the first nine months of 2024, the Company registered a Profit Before Tax (PBT) of RM489.2 million and Profit After Tax (PAT) of RM374.5 million, respectively. While this is a contraction from the previous year, these results demonstrate Nestlé Malaysia's ability to maintain a healthy profitability level in a challenging environment, enabling the Company to declare a second interim dividend of RM0.35 per share for the financial year ending 31 December 2024.

Mr. Aranols emphasised that Nestlé Malaysia remains dedicated to delivering excellent quality, taste, and value through the Company’s brands and products, while also making a positive impact on the community, through extensive sustainability and CSR programmes. Some notable highlights include:
 

  • The long-term partnership with the Malaysian Red Crescent Society, including the recent collaboration to provide urgent relief to flood victims in Kedah.
  • The celebration of excellence and recognition to the efforts and dedication of Malaysia's Olympic and Paralympic heroes by contributing RM10,000 to each of the 56 athletes representing the country at the 2024 Paris Olympic and Paralympic Games.
  • The successful second edition of the Salary For Life contest made the dreams of the winners a reality, while at the same time Nestlé Malaysia contributed RM840,000 to 18 local charities and NGOs to further support their charitable efforts. 
  • The contribution of RM100,000 to Yayasan Jantung Malaysia (YJM) and Institut Jantung Negara (IJN) Foundation to support their heart health awareness campaigns, in conjunction with the annual NESTLÉ OMEGA PLUS Walk a Million Miles campaign.

Outlook 
“Looking ahead, we expect a progressive normalisation of the factors determining the challenging consumer environment in 2024. We reiterate our earlier guidance regarding a gradual improvement of conditions and a return to healthy growth latest by H1 2025. We remain confident in our fundamental strengths as the leading FMCG player across the multiple categories where we compete. On this solid foundation we continue to build trust in our brands through our responsible corporate actions and by offering Malaysians the best range of great tasting Halal products that meet their health, nutrition and lifestyle expectations under the brands they trust. As we have done through our 112 years of presence in the Nation, we will continue to invest in Malaysia for the long run, creating jobs and development opportunities for Malaysians and contributing to the betterment of communities and the planet.”


About Nestlé Malaysia: Nourishing Malaysians for Over a Century
Since 1912, Nestlé has been nourishing Malaysians and earning their trust through our quality brands and products. We take pride in our role as a responsible corporate citizen, striving to improve the communities in which we operate. Today, we operate six factories, employing over 5,000 Malaysians. All our products are Halal, making us the largest Halal manufacturer for Nestlé globally.

As the world's largest food and beverage manufacturer, with our headquarters based in Switzerland, Nestlé operates in over 180 countries. With a workforce of over 270,000 dedicated employees, we are driven by our purpose to unlock the power of food, enhancing the quality of life for everyone, both today and for future generations. Our commitment to nutrition, health, and wellness guides our performance, ensuring we deliver on our promise of GOOD FOOD, GOOD LIFE.

To discover more about our century-long journey of nourishing Malaysians, please visit our website at 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] 

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