Nestle in a bind as Malaysians ‘downtrade’ to cheaper brands

Free Malaysia Today

Malaysians, whose purchasing power has been eroded by high inflation, are substituting Nestle products with cheaper options.  Read More:  https://www.freemalaysiatoday.com/category/highlight/2024/07/31/nestle-in-a-bind-as-malaysians-downtrade-to-cheaper-brands/   Free Malaysia Today is an independent, bi-lingual news portal with a focus on Malaysian current affairs.    Subscribe to our channel - http://bit.ly/2Qo08ry   ------------------------------------------------------------------------------------------------------------------------------------------------------ Check us out at https://www.freemalaysiatoday.com Follow FMT on Facebook: https://bit.ly/49JJoo5 Follow FMT on Dailymotion: https://bit.ly/2WGITHM Follow FMT on X: https://bit.ly/48zARSW  Follow FMT on Instagram: https://bit.ly/48Cq76h Follow FMT on TikTok : https://bit.ly/3uKuQFp Follow FMT Berita on TikTok: https://bit.ly/48vpnQG  Follow FMT Telegram - https://bit.ly/42VyzMX Follow FMT LinkedIn - https://bit.ly/42YytEb Follow FMT Lifestyle on Instagram: https://bit.ly/42WrsUj Follow FMT on WhatsApp: https://bit.ly/49GMbxW  ------------------------------------------------------------------------------------------------------------------------------------------------------ Download FMT News App: Google Play – http://bit.ly/2YSuV46 App Store – https://apple.co/2HNH7gZ Huawei AppGallery - https://bit.ly/2D2OpNP  #FMTNews #Nestle #Bind #MalaysiansDowntrade #CheaperBrands

Transcript

00:00Trouble is looming for Nestlé Malaysia Berhad as cash-strapped Malaysian consumers are increasingly

00:08ditching the products of the world's biggest food company for cheaper alternatives.

00:14Kananga Research maintained its underperformed call on the stock, saying the recent trend

00:18of consumers down-trading to cheaper brands or its lower-end products has been widespread

00:23across all product categories.

00:26In a note yesterday, it said sustained elevated inflation is eroding consumer purchasing power,

00:31adding that the lingering boycott of certain Western products due to Israel's war on

00:35Gaza is exacerbating the situation.

00:39Kananga said Nestlé Malaysia, a subsidiary of Switzerland-based Nestlé S.A., had indicated

00:44that it would be putting the brakes on price hikes moving forward.

00:48The company had raised prices of its bestsellers, including Milo, Nescafe and Maggi Tomato Ketchup

00:54by approximately 5% to 6% from July 1st to mitigate the rising cost of raw materials.

01:00In a bourse filing on July 26, the group announced a 48.3% drop in net profit for the second

01:06quarter ending June 30, 2024, to Rp. 93.59 million from Rp. 180.91 million a year ago.

01:15Quarterly revenue fell by 13% to Rp. 1.52 billion from Rp. 1.75 billion, attributed

01:21to a decline in domestic sales driven by subdued consumer sentiment and constrained purchasing

01:26power.

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