Nestlé (Malaysia) (NESTLE) Q2 2024 earnings summary

Executive summary

• Revenue for Q2 2024 was RM1.52 billion, down 13% year-over-year, mainly due to subdued consumer sentiment and lower domestic sales.

• Profit before tax for Q2 2024 was RM126.0 million, with profit after tax at RM93.6 million, both reflecting lower sales and pricing decisions.

• For H1 2024, turnover reached RM3.31 billion, a 7.9% decrease year-over-year, with profit before tax at RM385.1 million and profit after tax at RM289.1 million.

• The Board declared a first interim dividend of 70 sen per share, unchanged from the prior year.

Financial highlights

• Gross profit for Q2 2024 was RM443.7 million, down 21.4% year-over-year; H1 2024 gross profit was RM1,039.0 million, down 7.9%.

• Operating profit for Q2 2024 was RM141.1 million, a 44.4% decline year-over-year; H1 2024 operating profit was RM414.5 million, down 21.9%.

• Basic earnings per share for H1 2024 was 123.29 sen, compared to 161.22 sen in H1 2023.

• Net assets per share as at 30 June 2024 stood at RM2.83, down from RM2.88 at the end of 2023.

Outlook and guidance

• Challenging market conditions are expected to persist through Q3 2024, with a gradual recovery anticipated by H1 2025.

• The company remains focused on value, quality, and innovation, aiming to support local communities and sustainability.