Read this in:
▪ Bahasa Malaysia (pdf, 176 KB)
▪ Chinese (pdf, 381 KB)
Solid market leadership across categories maintained, consumer momentum improving
Petaling Jaya, February 25, 2025 - Nestlé (Malaysia) Berhad delivered a Turnover of RM6.22 billion for the financial year ended 31 December 2024, an 11.7% decline from a record high level of sales achieved in 2023. This level of sales confirms the strength and resiliency of the Company’s portfolio, which was impacted in 2024 by consumer hesitancy as well as by constraints in purchasing power. All these elements have shown signs of improvement through the final quarter of the year.
While domestic sales were under some pressure, exports accelerated, confirming the competitiveness of Nestlé Malaysia in the international context, benefitting, amongst other factors, from being the largest Halal manufacturing and export hub for the Nestlé Group globally.
The Company delivered a Profit Before Tax of RM544.4 million and Profit After Tax of RM415.6 million, solid figures in spite of a decline compared with the high 2023 profit baseline. The continuous focus on driving efficiencies and cost optimisation opportunities helped to partially mitigate the impact from lower sales and higher commodity costs. In line with the Company’s commitment to deliver value to its shareholders, the Board declared a third interim dividend of RM0.74 per share for the financial year ended 31 December 2024, bringing the cumulated total to RM1.79 per share to date.
Mr. Juan Aranols, Chief Executive Officer of Nestlé (Malaysia) Berhad, said, “As shared in our previous quarterly updates, we were confronted with a complex and challenging operating environment in 2024, marked by cautious consumer spending and persisting hesitancy towards global brands. Our ability to navigate these challenges is a testament to the dedication and capability of our team, relentlessly focused always on our mission of delivering high quality and Halal certified products, delivering the taste that Malaysians love, and under the brands they trust; products proudly made in Malaysia, by Malaysians and for Malaysians, and exported to all corners of the world. This unwavering effort has allowed us to sustain our solid market leadership across business segments and overall. All the efforts of our teams are preparing us well to a return to healthy growth levels in 2025.”
Throughout 2024, Nestlé Malaysia further sharpened its operational edge to successfully compete and win in a highly competitive market. In addition to offering the largest set of the Ministry of Health’s Healthier Choice certified products, the Company has made great strides in the digitalisation of operations, the streamlining of administrative processes and the upgrade of commercial and logistic capabilities to further strengthen its reach and coverage across the nation. Several relevant innovations were launched in the year under review, with the recently introduced KITKAT Chocolate Drink, a global first; the expansion of the “healthy longevity” portfolio under the OMEGA and ENERCAL brands; the extension of the Ready to Drink range under NESCAFÉ and MILO; as well as the portable MAGGI bowls upgrade under the SYIOK range.
“With all the actions taken, plus the signs of recovery observed in the consumer sentiment and confidence through the later part of the year, we are confident in achieving a return to healthy growth levels, in line with the historical trajectory consolidated throughout our 112 years of presence in Malaysia,” Aranols added.
In addition to the resilient financial performance, Nestlé Malaysia further advanced its Environmental, Social and Governance (ESG) agenda, with all major programmes advancing as planned. Some examples include: Project RELeaf (the Company’s reforestation programmes accelerated after the COVID lockdowns) will complete the 3 Million trees planted ambition before the end of the year; Project SAVE (the collection ecosystem organised in collaboration with recyclers and municipalities to collect and recycle plastic waste) has expanded to Penang and is reaching over 200,000 households on a weekly basis; we successfully tested, with support from the Ministry of Transport, the first pilot Electric Lorry shuttle moving ingredients across Nestlé factories in Malaysia and Singapore; and, last but not least, the launch of MILO’s Tenaga Untuk Kebaikan programme is set to improve the learning environment in schools in less privileged areas with the supply of durable furniture and sports equipment built with recycled materials collected via our Project CAREton, in collaboration with Tetra Pak.
On the social responsibility front, Nestlé Malaysia provided over RM4 million in financial and in-kind contributions to the Malaysian Red Crescent in support of their humanitarian relief efforts, as part of the total of RM14.2 million allocated to community aid and flood relief initiatives in 2024.
Outlook
Mr. Aranols added, “As per our earlier guidance, we anticipate a return to healthy growth levels in 2025, with resilient profit and solid cash flow, driven by our broad product portfolio, strong brand equities and extensive sales and distribution network. We will continue strengthening our manufacturing infrastructure, reinforcing Malaysia’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 the Rakyat. Our long-term strategy is anchored in a virtuous circle where efficiencies fund brand investments that help to boost growth and market shares and support the funding of innovation. This will remain at the heart of our actions, while we will pay much necessary attention to global events and the multiple factors of volatility that are currently taking shape and may have a direct or indirect impact on business conditions in Malaysia and around the world in the coming months.”
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]