Nestlé (Malaysia) (NESTLE) Q4 2024 earnings summary

Executive summary

• Revenue for the year ended 31 December 2024 was RM6.22 billion, down 11.7% year-over-year, mainly due to a 15.7% contraction in domestic sales, while export sales grew 4.9%.

• Profit before tax for the year was RM544.4 million, a 38.1% decrease year-over-year; profit after tax was RM415.6 million, down 37.0%.

• The fourth quarter saw revenue of RM1.47 billion, a 12.6% decline from the same quarter last year, with profit after tax dropping 72.2% to RM41.1 million.

• Export business remained resilient, growing 6.9% in Q4 and 4.9% for the year, offsetting some domestic weakness.

• New product launches and ESG initiatives, including Project RELeaf and Project SAVE, advanced as planned.

Financial highlights

• Gross profit for the year was RM1.88 billion, down 15.5% year-over-year.

• Operating profit for the year was RM609.0 million, a 35.2% decrease year-over-year.

• Basic earnings per share for the year was 177.24 sen, compared to 281.39 sen in 2023.

• Total comprehensive income for the year was RM419.0 million, down 36.8% year-over-year.

• Total dividend for 2024 was 179 sen per share, compared to 268 sen in 2023.

Outlook and guidance

• Management anticipates a return to healthy growth in 2025, driven by a broad product portfolio, strong brands, and expanded manufacturing infrastructure.

• Focus remains on cost optimization, brand investment, and reinforcing the company’s role as a major Halal manufacturing and export hub.