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Nestle Malaysia's Q2 earnings boosted by strong sales momentum
Nestle Malaysia's Q2 earnings boosted by strong sales momentum

The Sun

time3 hours ago

  • Business
  • The Sun

Nestle Malaysia's Q2 earnings boosted by strong sales momentum

PETALING JAYA: Nestle Malaysia delivered positive sales growth for the first half of 2025, driven by solid acceleration in its second quarter ended June 30, 2025 (Q2'25). In Q2'25, the company recorded a turnover of RM1.67 billion, an increase from RM1.52 billion in Q2'24. For the quarter, Nestle Malaysia delivered a higher profit before tax of RM148.6 million and profit after tax of RM112.1 million, both marking double-digit growth against the Q2'24 baseline. The strong sales momentum in the second quarter was broad-based across brands and reflects further sales progress following successful Chinese New Year and Ramadan/Hari Raya campaigns in the first quarter. Nestle Malaysia announced a first interim dividend of 70 sen per share, the same amount as in the prior year. Alongside domestic sales, the company's export business accelerated, confirming Nestle Malaysia's international competitiveness, while continuing to leverage its role as the largest halal manufacturing hub for the Nestle Group worldwide. In a statement yesterday, the company said this performance underscores its ability to manage margins amid sustained volatility in commodity prices through the systematic application of the Nestle Virtuous Circle framework. CEO Juan Aranols said, 'The second quarter results validate our earlier guidance of returning to healthy growth by H1 2025. Amid market volatility and intense competition, we continued to drive strong brand plans with effective execution across all sales channels. We remain committed to continue honouring the trust Malaysians place in our brands and products, always Halal-certified and proudly made in Malaysia, by Malaysians and for Malaysians.' Throughout the quarter, Nestle Malaysia maintained its focus on the strong drivers of preference for its brands and product offerings in an evolving marketplace, namely those associated with quality, taste and nutritional relevance. In combination with its wide distribution network and best-in-class commercial execution, the company's core products performed well, complemented by product innovations that have been positively received by consumers, helping to sustain market leadership positions. In Q2'25, Nestle Malaysia continued to advance its environmental, social and governance efforts through impactful collaborations and sustainability initiatives. To further strengthen its commitment to responsible sourcing, the company signed a memorandum of understanding with the Malaysian Sustainable Palm Oil (MSPO) to uphold good trade and sourcing best practices that meet international requirements. Nestle further advanced its commitment to reenergise cocoa farming in Malaysia, as showcased during the Malaysian International Cocoa Fair 2025 where the company reinforced its ambition to source 10,000 tonnes of locally grown cocoa by 2034. 'Our focus remains on delivering shared value to both local communities and the environment. Each of these efforts is a step toward shaping a more inclusive, sustainable future for Malaysia,' said Aranols. 'As we navigate through the second half of 2025, we remain confident in our ability to drive solid growth momentum and profit recovery through the coming quarters,' he said, adding that they are mindful and vigilant of the geopolitical uncertainties that may impact the business environment in Malaysia. For the six months period to June 30, 2025, Nestle Malaysia's net profit fell to RM273.45 million from RM289.11 millionl in H1'24 although revenue rose to RM3.44 billion from RM3.31 billion in the corresponding period in 2024.

Sarawakian NGO: Need to clear health confusion of Malaysians associating palm oil with high cholesterol
Sarawakian NGO: Need to clear health confusion of Malaysians associating palm oil with high cholesterol

Focus Malaysia

time3 hours ago

  • Health
  • Focus Malaysia

Sarawakian NGO: Need to clear health confusion of Malaysians associating palm oil with high cholesterol

A NATIONAL survey commissioned by Pertubuhan Transformasi Dayak (TRADA) has confirmed that Malaysians strongly support sustainably produced palm oil while placing high trust in the Malaysian Sustainable Palm Oil (MSPO) certification scheme. The findings further highlighted a persistent health misconception that should be addressed, particularly among younger Malaysians who will shape the future of the industry. Conducted in 2024 by independent research firm, Green Zebras (GZ), the survey engaged 1,000 respondents aged 18 to 50 across Peninsular and East Malaysia. The results showed 62% of Malaysians believe palm oil is produced in an environmentally-friendly manner. Among those who were aware of the MSPO certification, 96% agreed that independent certification is essential. Additionally, 99% believe MSPO supports fair labour practices, while 75% believe that the government is prioritising sustainability. In welcomed the findings, TRADA president Joseph Janting noted the growing public trust in sustainable palm oil with Malaysia's leadership in responsible production. 'This survey shows that Malaysians understand the importance of sustainability and that MSPO plays a key role in building trust. It is encouraging to see continued public support for strengthening industry standards,' he contended. However, Janting expressed concern over lingering health misconceptions. While 54% consider palm oil to be healthy, 37% still associate it with high cholesterol. 'It is surprising that although most Malaysians use palm oil in their everyday cooking, many are still unsure whether it is good for their health. This shows that more needs to be done to help people understand the real facts,' he justified. Janting went on to stress the importance of involving youth in public education efforts, particularly in regions like Sarawak where many young people are directly connected to agricultural communities. For the unanimated, TRADA's key focus has been on preparing and assisting the Dayak community in facing the modern challenges. 'Young Malaysians, especially those in East Malaysia, have a personal stake in the future of the palm oil industry,' enthused Janting. 'They're the next generation of consumers, communicators and producers. It is crucial that they are equipped with accurate, science-based knowledge so they can speak with confidence about what this industry truly represents,' he added. – July 24, 2025

Can palm oil go net zero? Inside the push to cut climate impact
Can palm oil go net zero? Inside the push to cut climate impact

Euractiv

time2 days ago

  • Business
  • Euractiv

Can palm oil go net zero? Inside the push to cut climate impact

Palm oil is one of the most ubiquitous substances in the goods we consume, found in everything from chocolate to cosmetics. It's in nearly 50% of the packaged products we see in supermarkets, and it's also used in animal feed and as a biofuel in many parts of the world. The reason is that it's an extremely versatile oil with numerous properties and functions. It is semi-solid at room temperature, making it suitable for use in food, and it's resistant to oxidation, which can extend the shelf life of products. It's also odourless and colourless, so it doesn't alter the look or smell of food products. It would therefore be very difficult to replace with another ingredient. But palm oil has long been linked to deforestation, fires and greenhouse gas emissions. The forest loss, together with the conversion of carbon-rich peat soils, has caused millions of tonnes of greenhouse gases to escape into the atmosphere. Still, could there be a way to reap the benefits of palm oil without contributing to climate change? Today, producing countries, major brands, and local farmers are betting that new technology and rules can rewrite that story - and even push palm oil toward net-zero emissions. The biggest challenge is stopping indirect land use change (ILUC), the hidden climate cost when forests are cleared elsewhere to make room for crops that have been displaced by palm oil cultivation. For Indonesia and Malaysia, the two biggest producers of palm oil, these efforts have been particularly important. 'In Malaysia, palm oil is produced in accordance with sustainable principles and criteria under the Malaysian Sustainable Palm Oil (MSPO) certification scheme, which has been implemented on a mandatory basis from January 2020,' says Dr. Ahmad Parveez Ghulam Kadir, Director-General of the Malaysian Palm Oil Board. 'The MPSO certification has a deforestation cut-off date of 31 December 2019, which strengthened the requirements for new planting.' Satellite eyes in the sky Over the past two decades, pressure from consumers and regulators has motivated palm oil giants to clean up their supply chains. At the heart of this effort is traceability - proving exactly where each tonne of palm oil comes from. Multinational companies like Unilever, Ferrero, Nestlé, and Kao now monitor vast plantations with high-resolution satellite imagery and AI detection tools. Ferrero, for example, has tracked 100% of its palm oil to the plantation level since 2016 and uses Starling satellite monitoring to flag forest loss in real time. Unilever's NDPE (No Deforestation, No Peat, No Exploitation) dashboard tracks 20 million hectares globally. Meanwhile, producing countries are tightening the rules. Indonesia has launched its e-STDB traceability platform, which requires farmers and companies to register their palm plantations on a national blockchain-based database. Malaysia is developing the National Oil Palm Traceability System, to establish full traceability across the supply chain. 'This system is anchored by the Sawit Intelligent Management System (SIMS) for traceability data and will be integrated with GeoSawit and e-MSPO, two important platforms that support geospatial mapping and sustainability certification, respectively,' says Ahmad Parveez. He said, 'The integrated approach enables the tracking of the origin of palm products along the supply chain from the plantation and smallholders. The traceability system is crucial in the context of sustainability and climate commitments, including monitoring, management and reporting of emissions, among others.' These advances are being supercharged by technology. New satellite monitoring systems - like Earthqualizer, and Global Forest Watch - use AI to spot illegal land clearing, even under cloud cover. This surveillance is giving companies and governments near real-time alerts when new plantations appear on high-carbon peatlands or primary forests. Changes on the ground Palm oil emissions don't just come from clearing forests, but also from methane leaking from palm oil mills. Malaysia's Sustainable Palm Oil Roadmap encourages mills to capture methane and turn it into biogas, cutting emissions by nearly 40% per tonne of crude palm oil, according to a 2023 industry report. Meanwhile, projects like PALMSTEP in Central Kalimantan, funded by the European Union, help smallholder farmers get certified and access digital tools for traceability and regenerative farming, reducing the pressure to expand into forests. Palm oil mills emit methane from wastewater and CO₂ from energy use. Methane-capture biogas systems, together with switching to renewable energy, can reduce mill CO₂e intensity by around 40%, according to experts. Energy-efficient mills coupled with zero-burning policies can also help combat both direct emissions and ILUC pressures. 'The cooperation among countries in Southeast Asia has continued to ensure conservation of forest and biodiversity as well as reduce impact on the environment and contribute to climate action,' says Parveez. 'One of the examples is the Heart of Borneo, a trilateral cooperation between Brunei, Indonesia and Malaysia covering an area of over 20 million hectares that help to strengthen the world's resilience to climate change by conserving carbon sinks and creating a huge green lung for the world, and at the same time protecting the livelihoods of the forest dependent communities.' He noted that in addition, Malaysia has the Central Forest Spine initiative that covers 5.3 million hectares in Peninsular Malaysia as part of the conservation efforts at the national level. Is it working? So far, there has been progress, but not as much as campaigners would have liked to see. The NGO WWF has said that it is better to stick with palm oil rather than alternatives like soybeans, coconut or sunflower oil because they require between four to ten times more land. But they say that while progress is being made on reducing palm oil's climate and environmental impact, change isn't coming fast enough. Studies show deforestation rates linked to palm oil have fallen in Indonesia and Malaysia since the destructive haze years of 2015, when fires raged across peatlands, releasing over 500 million tonnes of CO₂. The World Resources Institute reports that palm-related deforestation dropped by more than 40% between 2012 and 2022, thanks in part to corporate 'zero deforestation' pledges and tighter land laws. 'Palm oil presents a positive example of decoupling commodity production from deforestation,' says Anita Neville, Chief Sustainability and Communications Officer at the Singapore-based palm oil company Golden Agri-Resources. Neville remarked that forest loss linked to palm oil production in Indonesia, the world's largest palm oil producer, fell by more than 90% from its peak in 2012 to 2022, while palm oil production continued to increase. But scientists warn that indirect land use change remains a threat if demand keeps rising. If plantations expand into untouched forests or displace other crops to new frontiers, the climate gains vanish. The Roundtable on Sustainable Palm Oil (RSPO), formed in 2004, has been working to ensure that climate gains are maintained. RSPO has production standards for growers that set best practices for producing and sourcing palm oil, and it has the buy-in of most of the global industry. Companies can certify their products with the RSPO label to demonstrate to consumers they are part of these efforts. Nearly 20% of global palm oil is RSPO-certified. The world's top palm oil producers have big climate promises. Indonesia aims for net-zero emissions by 2060, while Malaysia wants to get there by 2050, leaning heavily on transforming its palm sector. Major buyers like Unilever, Nestlé, and Ferrero have pledged to buy 100% sustainably sourced palm oil within the next two years. Still, critics argue that global demand and enforcement gaps could undermine these ambitions. [Edited By Brian Maguire | Euractiv's Advocacy Lab ]

India Become Top Buyer Of Malaysia's Oil Palm Seed
India Become Top Buyer Of Malaysia's Oil Palm Seed

NDTV

time3 days ago

  • Business
  • NDTV

India Become Top Buyer Of Malaysia's Oil Palm Seed

Kuala Lumpur: India has emerged as Malaysia's largest importer of germinated oil palm seeds, with demand surging as the country accelerates efforts to boost domestic palm oil production and reduce import dependency. India imported 3.03 million tonnes of palm oil from Malaysia in 2024, representing 17.9 per cent of Malaysia's total palm oil exports and making it the top destination for Malaysian palm oil. "There has been a noticeable increase in demand for Malaysian oil palm seeds, particularly from India," Malaysian Palm Oil Board Director General Ahmad Parveez Ghulam Kadir told PTI, citing India's push to expand domestic production. India aims to rapidly expand palm oil cultivation to 1 million hectares by 2025-26 and achieve nearly 2.8 million tonnes of crude palm oil production by 2029-30 under its National Mission on Edible Oils-Oil Palm scheme. The country currently has about 370,000 hectares under palm oil cultivation as of mid-2025, focusing particularly on northeastern states and island regions. The seed trade, however, remains largely informal, with supplies conducted on an ad hoc basis through one-off consignments without formal contracts or long-term agreements, Kadir noted. Most transactions happen through business-to-business arrangements where Malaysian exporters provide quality planting materials and technical expertise. "Malaysia welcomes this development as it reflects confidence in the quality of our seeds and our longstanding partnership with India," he said. The development comes even as Malaysia's palm oil exports to India have moderated following New Delhi's recent reduction in tariffs on crude palm oil. Kadir said India's tariff adjustments are part of broader policy measures to manage domestic supply and keep cooking oil prices affordable for consumers. "While Malaysia has seen some moderation in export volumes to India, we remain a key and reliable supplier, and the Indian market continues to be a priority," he said. Malaysia is engaging stakeholders to strengthen its position in food manufacturing and hospitality segments where demand remains strong, while promoting sustainable palm oil certified under the Malaysian Sustainable Palm Oil standard. The Malaysian Palm Oil Board has developed new high-yield varieties through breeding programs that can potentially produce over 30 tonnes of fresh fruit bunches per hectare annually, nearly double Malaysia's national average of 15.47-16.73 tonnes recorded between 2020-2023. The improved varieties also have slower height growth, extending economic lifespan from 25 years to over 30 years while facilitating harvesting operations. Current Malaysian commercial seeds are suitable for cultivation in India with proper farming practices and adequate irrigation, Kadir said, noting the materials have performed well under tropical conditions similar to many Indian regions with sufficient rainfall. Research efforts are underway to develop climate-resilient varieties with improved drought tolerance, though none have been commercially released yet, he added.

With surging demand, India emerges as Malaysia's largest importer of germinating oil palm seeds
With surging demand, India emerges as Malaysia's largest importer of germinating oil palm seeds

The Hindu

time3 days ago

  • Business
  • The Hindu

With surging demand, India emerges as Malaysia's largest importer of germinating oil palm seeds

India has emerged as Malaysia's largest importer of germinated oil palm seeds, with demand surging as the country accelerates efforts to boost domestic palm oil production and reduce import dependency. India imported 3.03 million tonnes of palm oil from Malaysia in 2024, representing 17.9% of Malaysia's total palm oil exports and making it the top destination for Malaysian palm oil. If India gives land, we will work together to produce palm oil here, says visiting Malaysian Minister "There has been a noticeable increase in demand for Malaysian oil palm seeds, particularly from India," Malaysian Palm Oil Board Director General Ahmad Parveez Ghulam Kadir told PTI, citing India's push to expand domestic production. India aims to rapidly expand palm oil cultivation to one million hectares by 2025-26 and achieve nearly 2.8 million tonnes of crude palm oil production by 2029-30 under its National Mission on Edible Oils-Oil Palm scheme. The country currently has about 3,70,000 hectares under palm oil cultivation as of mid-2025, focussing particularly on northeastern States and island regions. Malaysia looks for new markets for palm oil as EU threatens with stricter ecological regulations 'The seed trade, however, remains largely informal, with supplies conducted on an ad hoc basis through one-off consignments without formal contracts or long-term agreements,' Mr. Kadir noted. Most transactions happen through business-to-business arrangements where Malaysian exporters provide quality planting materials and technical expertise. "Malaysia welcomes this development as it reflects confidence in the quality of our seeds and our longstanding partnership with India," he said. The development comes even as Malaysia's palm oil exports to India have moderated following New Delhi's recent reduction in tariffs on crude palm oil. Mr. Kadir said India's tariff adjustments are part of broader policy measures to manage domestic supply and keep cooking oil prices affordable for consumers. "While Malaysia has seen some moderation in export volumes to India, we remain a key and reliable supplier, and the Indian market continues to be a priority," he said. Malaysia is engaging stakeholders to strengthen its position in food manufacturing and hospitality segments where demand remains strong, while promoting sustainable palm oil certified under the Malaysian Sustainable Palm Oil standard. The Malaysian Palm Oil Board has developed new high-yield varieties through breeding programmes that can potentially produce more than 30 tonnes of fresh fruit bunches per hectare annually, nearly double Malaysia's national average of 15.47-16.73 tonnes recorded between 2020-2023. Palm oil imports in May jump 87% to six-month high in India, dealers say The improved varieties also have slower height growth, extending economic lifespan from 25 years to more than 30 years while facilitating harvesting operations. 'Current Malaysian commercial seeds are suitable for cultivation in India with proper farming practices and adequate irrigation,' Mr. Kadir said, noting the materials have performed well under tropical conditions similar to many Indian regions with sufficient rainfall. 'Research efforts are under way to develop climate-resilient varieties with improved drought tolerance, though none have been commercially released yet,' he added.

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