KUALA LUMPUR (April 29): Nestlé (Malaysia) Bhd's net profit for the first quarter ended March 31, 2024 (1QFY2024) dipped 0.8% to RM195.51 million from RM197.15 million a year earlier, due mainly to the impact of slightly lower sales, offset by proactive cost management initiatives as well as better commodity costs.

In a bourse filing on Monday, the company said revenue for the quarter slipped 3.2% to RM1.78 billion from RM1.84 billion, due to a slight decline in domestic sales.

Earnings per share stood at 83.37 sen versus 84.07 sen earlier.

Nestlé did not declare any dividend for the quarter.

Reviewing its performance, Nestlé said amid a challenging environment where consumers remained cautious with their spending, coupled with an intense competitive landscape, the company continued to focus on delivering high-quality products, made in Malaysia, to meet Malaysians’ expectations of taste, convenience, nutrition and value.

“With close proximity between Chinese New Year and the start of Ramadan, our teams remained laser-focused in ensuring effective commercial execution, relevant communication and operational excellence across all channels,” it said.

Nestlé said it continued to make significant strides in its environmental, social and governance (ESG) agenda, with all existing programmes continuing to make progress.

“An important milestone was the official launch of our biomass boiler in our Chembong factory in Negeri Sembilan, Nestlé’s largest Milo plant in the world, allowing a decrease in the factory’s greenhouse gas emissions by 14,000 tonnes of CO2 equivalent annually,” it said.

On its prospects, Nestlé said 2024 is shaping to be a rather challenging year with pressure on short-term growth derived from the lingering effect of inflation and foreign exchange volatility on Malaysians' purchasing power as well as heightened competition.

“We remain fully focused to meet the needs and expectations of Malaysians, while being a responsible and proactive partner to bring positive societal change at multiple levels contributing to fulfil our mission of enhancing the quality of life and the transition to a more sustainable future for the benefit of all Malaysians,” it said.

At the midday break on Monday, Nestlé had shed 0.16% or 20 sen to RM127 a share, with 38,700 shares traded.