KUALA LUMPUR (Oct 24): Nestlé (Malaysia) Bhd's (KL:NESTLE) net profit fell 36.12% to RM85.41 million for the third quarter ended Sept 30, 2024 (3QFY2024), from RM133.7 million a year earlier, due to a lower revenue caused by a drop in domestic sales.
This is the second straight quarter that the group's net profit has dropped below the RM100 million mark, after reporting a 48.27% year-on-year drop to RM93.6 million for 2QFY2024. In the first quarter, net profit was down by a marginal 0.8% at RM195.51 million.
Domestic sales were impacted by consumer hesitancy amid cautious spending and affordability concerns, the consumer goods group said in a bourse filing on Thursday.
Earnings per share fell to 36.42 sen, from 57.02 sen in 3QFY2023.
Quarterly revenue dropped 18.4% year-on-year to RM1.45 billion from RM1.77 billion.
Nestlé declared a second interim dividend of 35 sen per share, half the 70 sen dividend paid a year earlier. The dividend will be paid on Dec 12, and brings the year-to-date payout to RM1.05 sen per share, compared with RM1.40 previously.
For the first nine months of FY2024, net profit declined 26.82% to RM374.52 million, from RM511.77 million in the previous corresponding period, as revenue shrank 11.44% to RM4.75 billion from RM5.37 billion.
Nestlé said that while market conditions are expected to remain challenging but progressively improving in the near term, the group anticipates a return to healthy growth by the first half of 2025.
“We remain confident in our fundamental strength as the leading fast-moving consumer goods player across the multiple categories where we compete,” it said. “We will continue to build trust in our brands through our responsible corporate actions and by offering Malaysians the best range of great tasting halal products that meet their health, nutrition and lifestyle expectations under brands they trust."
Nestlé’s share price closed down RM1.90 or 1.8% to RM102.50, bringing the group a market capitalisation of RM24.04 billion. Year-to-date the stock has fallen 12.8%.