Nestlé (Malaysia) (NESTLE) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 declined 18.4% year-over-year to RM1.45 billion, mainly due to reduced domestic sales amid cautious consumer spending and affordability concerns.

• Profit before tax for Q3 2024 was RM104.1 million, down 48.0% year-over-year; profit after tax was RM85.4 million, down 36.1%.

• For the first nine months of 2024, revenue fell 11.4% year-over-year to RM4.75 billion, with profit after tax at RM374.5 million, down 26.8%.

• The group continues to focus on efficiency programs, digitalization, and innovation to support margins and brand investments.

Financial highlights

• Gross profit for Q3 2024 was RM452.3 million, down 19.5% year-over-year; for the nine months, gross profit was RM1.49 billion, down 11.8%.

• Operating profit for Q3 2024 was RM121.8 million, down 43.4% year-over-year; nine-month operating profit was RM536.4 million, down 28.1%.

• Basic earnings per share for Q3 2024 was 36.42 sen (Q3 2023: 57.02 sen); for the nine months, 159.71 sen (2023: 218.24 sen).

• Interim dividend declared at 35 sen per share, compared to 70 sen per share in the prior year.

Outlook and guidance

• Management expects challenging but progressively improving market conditions, with a return to healthy growth anticipated by H1 2025.

• Continued investment in Malaysia and focus on delivering value through trusted brands and innovation.