KUALA LUMPUR: Nestle (Malaysia) Bhd’s net profit fell 36.1 per cent year-on-year (YoY) to RM85.4 million in the third quarter ended Sep 30, 2024 (Q3 2024) from RM133.7 million a year ago on the back of lower revenue.

Its revenue dropped 18.4 per cent YoY to RM1.45 billion from RM1.77 billion in Q3 2023 due to the reduction in domestic sales, affected by consumer hesitancy amid cautious spending and affordability concerns.

For the nine months period ended Sep 30, 2024, the company’s net profit stood at RM374.52 million from RM511.77 million in the same period last year.

Its revenue dropped 11.4 per cent to RM4.75 billion from a historic high number of RM5.37 billion in the same period last year.

The company said consumer hesitancy and cautious spending remain the key factor for the decrease with some signs of progressive improvement in the later part of the quarter.

“Our focus on delivering high-quality, nutritious and great-tasting Halal products that offer value to consumers allows us to protect our market leadership and to remain resilient in a very challenging external context.

“We remain attuned to evolving consumer trends and ensure that all our core brands and products continue to meet the expectations of Malaysian consumers and to win in the marketplace.”

On the innovation front, Nestle Malaysia said it had introduced new products that resonate strongly with Malaysians.

“We observe opportunities also to expand our export sales. Internally, we are advancing an intense programme of efficiencies enabled by rapid digitalisation that is unlocking resources at different levels, helping to support brand investments while protecting our margins,” said chief executive officer Juan Aranols in a statement.

Aranols emphasised that Nestlé Malaysia remains dedicated to delivering excellent quality, taste, and value through the company’s brands and products, while also making a positive impact on the community, through extensive sustainability and corporate social responsibility programmes.

Some notable highlights include the long-term partnership with the Malaysian Red Crescent Society, including the recent collaboration to provide urgent relief to flood victims in Kedah and the contribution of RM100,000 to Yayasan Jantung Malaysia (YJM) and Institut Jantung Negara (IJN) Foundation to support their heart health awareness campaigns.

This is in conjunction with the annual NESTLÉ OMEGA PLUS Walk a Million Miles campaign.

Looking ahead, the company expects a progressive normalisation of the factors determining the challenging consumer environment in 2024.

“We reiterate our earlier guidance regarding a gradual improvement of conditions and a return to healthy growth latest by the first half of 2025.

We remain confident in our fundamental strengths as the leading FMCG player across the multiple categories where we compete,” he said.