KUALA LUMPUR: Nestlé (Malaysia) Bhd reported a 48 per cent drop in net profit to RM93.5 million for the second quarter of the 2024 financial year (2QFY24) from RM180.9 million in the same period the previous year.
Its revenue fell 13 per cent from RM1.75 billion to RM1.52 billion.
Nestlé Malaysia said its sales for the first half of 2024 (1H24) reached RM3.3 billion, an eight per cent correction compared to the record high sales achieved in the first half of 2023 (1H23).
This was attributed to constrained purchasing power, subdued consumer sentiment and cautious spending during the Chinese New Year and Hari Raya festive seasons.
Nestlé Malaysia chief executive officer Juan Aranols said the current environment continues to reflect subdued consumer sentiment and constrained purchasing power impacted particularly by the cumulated inflation in food and other basic items.
"We recognise the significant challenges this represents for Malaysian families.
"At Nestlé Malaysia, we remain focused on providing solid value propositions across our brands and products that meet the expectations of Malaysians, always with the highest quality and using the best ingredients," he said.
Commenting on the profitability trends for 1H24, Aranols noted that the company was aware of the significant challenges Malaysian families face due to high food costs, driven by the global situation of commodity prices.
"Looking ahead, we expect challenging conditions to remain throughout the third quarter and moderate progressively towards the end of the year, with a return to growth latest by H1 2025.
"In the meantime, we will continue providing Malaysians with the best range of great tasting Halal products that meet their health, nutrition and lifestyle expectations, and always anchored on our foundation of Quality and Safety," he added.