Nestlé Malaysia delivers another year of resilient results in 2023

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PETALING JAYA, Malaysia , February 29, 2024 (press release) –

Nestlé Malaysia reported a 5.8% growth in full-year turnover to RM7.05 billion in 2023, with a PAT of RM659.9 million . The company confirmed a RM1 billion Capex plan for 2023-2025. The CEO highlighted the focus on delivering high-quality products, driving growth through innovation, and commitment to sustainability in the coming year.

Key Highlights:

* Full-year Profit After Tax (PAT) increased to RM659.9 million in 2023

* Q4 Turnover increased by 2.3% to RM1.69 billion in Q4 2023

* Third interim dividend of RM1.28 per share declared for the financial year ended 31 December 2023

Original Press Release:

PETALING JAYA , Feb. 27 -- Nestlé issued the following news release:

- Group Confirms RM1 billion Capex Plan for 2023-2025 Period

KEY HIGHLIGHTS

* Full-year Turnover grew by 5.8% to RM7.05 billion , on the back of robust domestic sales.

* Full-year Profit After Tax (PAT) increased to RM659.9 million due to sales growth, internal efficiencies and lower taxes in the absence of Cukai Makmur (Prosperity Tax).

* Q4 Turnover increased by 2.3% to RM1.69 billion in Q4 2023, while PAT grew to RM148.1 million .

*  Third interim dividend of RM1.28 per share declared.

Nestlé Malaysia delivered solid results for the financial year ended 31 December 2023 with improved turnover and profitability driven by robust domestic sales growth. The results confirm once more the strength of the Group’s brand and product portfolio, which continue to meet the evolving needs and expectations of Malaysians.

In line with earlier announcements and reflecting its enduring commitment to invest and create employment in Malaysia , Nestlé Malaysia will continue to upgrade and invest in its industrial footprint in 2024, in line with the ongoing RM1 billion capital expenditure plan for the 2023 – 2025 period.

Review of performance: Quarter 4, 2023 vs Quarter 4, 2022

For the fourth quarter of 2023 (Q4 2023), the Group posted a Turnover of RM1.69 billion , up by 2.3% from last year’s corresponding quarter, contributed by positive domestic growth and some correction in export sales against a high baseline last year.

Mr. Juan Aranols, Chief Executive Officer of Nestlé ( Malaysia ) Berhad, said, “Through the last quarter of the year, we remained focused on our core mission of delivering high quality foods and beverages meeting the needs and expectations of Malaysians. We continued to harness all opportunities to drive demand in a more subdued environment where Malaysians paid increased attention to their spending, and competitive activity remained very intense. 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.”

Profit Before Tax (PBT) in Q4 2023 was slightly lower at RM176.7 million , primarily owing to higher operating expenses. Profit After Tax (PAT) increased to RM148.1 million , mainly due to the absence of Cukai Makmur (Prosperity Tax) imposed in 2022.

Review of performance: Full Year 2023 vs Full Year 2022

For the full year ended 31 December 2023 , the Group recorded a Turnover of RM7.05 billion , up by 5.8% from RM6.66 billion in the previous financial year. Domestic sales remained a key driver, fuelled by resilient consumer demand. This was offset slightly by lower export sales compared with 2022 which had experienced a strong rebound following the easing of global pandemic restrictions.

Mr. Juan Aranols, Chief Executive Officer of Nestlé ( Malaysia ) Berhad.

Mr. Juan Aranols, Chief Executive Officer of Nestlé ( Malaysia ) Berhad, said, “The resilient momentum we have achieved reflects the hard work and dedication of our team, always committed to deliver on our promise of Good Food, Good Life for all Malaysians. Our core brands continued to drive growth, while our new innovative products are tapping on emerging growth trends to create growth platforms for the future. As an example, we continue to drive the development of Plant Based Meals and Drinks under our HARVEST GOURMET and GOODNES brands; the development of new Culinary solutions under MAGGI, and the exciting additions to our Confectionery and Ice Cream ranges, such as KIT KAT Pink and KIT KAT Salted Caramel Cookies.”

Mr. Aranols added: “We constantly renew our full commitment to live up to the trust that Malaysians have placed in us for over 112 years. This is also demonstrated by our solid investment plans, supporting local employment and uplifting communities, as well as contributing to the economic development and food security of Malaysia . 100% of our products are Halal-certified and we take great pride in over 90% of the products we sell being proudly “Buatan Malaysia” (Made in Malaysia ) by Malaysians and for Malaysians. Our products are also exported to many parts of the world, as we are the largest Halal manufacturing hub in the Nestlé world.”

For the full year of 2023, the Group registered a PBT of RM879.1 million and PAT of RM659.9 million . This was contributed by the higher sales and the Group’s continuous focus on driving internal efficiencies and saving initiatives, which helped to alleviate the impact of unfavourable commodity prices and exchange rates. The improved PAT was also supported by lower taxes in the absence of Cukai Makmur (Prosperity Tax) imposed in 2022.

In line with the Group’s commitment to delivering value for shareholders, the Board declared a third interim dividend of RM1.28 per share for the financial year ended 31 December 2023 , 6 sen higher than the third interim dividend of 2022.

Mr. Juan Aranols added, “Alongside our financial performance, we have continued to drive in 2023 very substantive Environmental, Social and Governance (ESG) efforts. We completed an important milestone for Project RELeaf, successfully planting 1.5 million trees, on track to our target of reaching 3 million trees by 2025. This will bring our total to 4 million trees including those planted under our previous initiative, Project RiLeaf, which concluded in 2020.”

“Also on the sustainability front, we further expanded our community recycling programmes together with our partners and local municipalities, now reaching more than 170,000 households across Selangor and Kuala Lumpur . In 2023, we successfully collected close to 12,000 tonnes of post-consumer packaging waste, with nearly 6,750 tonnes being plastic materials.”

“In addition, to empower local farming communities with sustainable agricultural practices while supporting the nation’s food security, we extended our Farmer Connect Programme for the first time to East Malaysia , partnering with the Malaysian Cocoa Board to shape a responsible cocoa supply chain. We also strengthened our collaboration with the Malaysian Red Crescent Society to aid their various relief efforts, contributing a total of RM3.5 million in cash and in-kind contributions in 2023. I would like to recognise in particular all our employees involved in supporting flood relief efforts and other community initiatives under our NESTLÉ CARES volunteering programme.”

Prospects

Mr. Aranols commented, “Looking forward in 2024, challenges such as currency and commodity price fluctuations may persist, as well as the more subdued consumer sentiment and the impact on the purchasing power following the cumulated inflation of the last couple of years. We will continue doing in this context what we have been doing for over 112 years of presence in Malaysia : delivering high quality, great tasting nutritious products that meet the needs and expectations of Malaysians while making a positive difference for society through our values, our initiatives in support of the community and our efforts behind sustainability and the transition to a greener future for all.”

“Our investment plans, as planned earlier, are progressing and will set the foundation for further growth in the years to come. For the financial year of 2024, we are again confident in delivering resilient performance and meeting the expectations of our shareholders,” concluded Mr. Aranols.

About Nestlé Malaysia

Nestlé is the world’s largest food and beverage manufacturer. Headquartered in Switzerland , Nestlé is present in more than 180 countries around the world, and our 270,000 employees are committed to Nestlé’s purpose of unlocking the power of food to enhance quality of life for everyone, today and for generations to come. Our performance is driven by our Nutrition, Health and Wellness strategy. Nourishing Malaysians since 1912, Nestlé has earned the trust of our consumers through our quality brands and products. We are committed to improving the lives of the communities in which we operate, whilst maintaining our Halal excellence and integrity.

[Category: Food, Packaged Foods & Meats , Financial Results]

Source: Nestlé

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