KUALA LUMPUR (Feb 27): Nestlé (Malaysia) Bhd closed its financial year ended Dec 31, 2023 (FY2023) on a higher note as its fourth-quarter net profit rose 11.48% year-on-year, thanks mainly to the absence of the prosperity tax or Cukai Makmur that was imposed on its FY2022 earnings.

The group announced a third interim dividend payout of RM1.28 per share for shareholders, six sen more than the RM1.22 third interim dividend it announced in FY2022, taking its year-to-date payout to RM2.68, up from RM2.62 in the corresponding period previously, its bourse filing showed.

Net profit for the fourth quarter ended Dec 31, 2023 rose to RM148.1 million from RM132.85 million, with revenue climbing 2.26% to RM1.69 billion from RM1.65 billion, contributed by positive domestic growth despite some correction in export sales against a high baseline last year, the group said. Earnings per share advanced to 63.16 sen, from 56.65 sen.

But profit before tax (PBT) dipped 3.6% to RM176.66 million from RM183.33 million, primarily due to higher operating expenses, as the group recognised impairment losses for some assets.

For the full FY2023, the group recorded a net profit of RM659.87 million, up 6.37% from RM620.33 million in FY2022, as revenue expanded 5.8% to RM7.05 billion from RM6.66 billion, fuelled by resilient domestic demand that was offset by lower export sales, which experienced a strong rebound in FY2022 following the easing of global pandemic restrictions. FY2023's earnings per share rose to RM2.81 from FY2022's RM2.64.

PBT for FY2023 came in at RM879.09 million, up 2.3% from RM859.48 million in FY2022, due to higher sales. The group also attributed the stronger showing to its focus on driving internal efficiencies and saving initiatives, which it said helped to alleviate the impact of unfavourable commodity prices and exchange rates.  

Going forward, Nestlé Malaysia said challenges such as currency and commodity price fluctuations and more subdued consumer sentiment may persist.

"Our recipe to deliver another quarter of growth remains unchanged: to continue capturing all consumption opportunities across brands and products, leveraging the strength of our existing portfolio, driving innovation and excelling in commercial execution," Nestlé Malaysia chief executive officer Juan Aranols said in a statement.

Separately, the group announced it has appointed Tan Sri Wan Zulkiflee Wan Ariffin, the former chief executive officer of Petroliam Nasional Bhd, as its new chairman, effective May 1 this year, as Tan Sri Syed Anwar Jamalullail will be retiring from the group after 15 years at its helm.

Wan Zulkiflee is currently an independent, non-executive director on Nestlé Malaysia's board, a post he was appointed to four months ago in October 2023.

He currently also chairs the boards of DRB-Hicom Bhd and Gas Malaysia Bhd.

With extensive experience spanning over 40 years, Wan Zulkiflee’s career includes leadership roles across a spectrum of prominent organisations such as Malaysia Airlines Bhd and Malaysia Aviation Group Bhd.

Nestlé Malaysia’s share price closed 10 sen or 0.1% lower at RM121.50 on Tuesday, giving the group a market capitalisation of RM28.49 billion.