28-04-2025
Nestle Malaysia posts encouraging 1Q results
Nestlé (M) Bhd chief executive officer Juan Aranols. —ONG SOON HIN /The Star
PETALING JAYA: Nestle (M) Bhd kicked off 2025 with encouraging results for its first quarter ended March 31, 2025 (1Q25).
The company recorded a turnover of RM1.77bil for the quarter under review, matching the robust sales figures in 1Q24 and reflecting a 20.1% growth compared to 4Q24.
'The strong sales momentum was broad-based across brands, which reflects the successful planning and execution of Chinese New Year and Ramadan Hari Raya activities,' the food and beverage company said in a statement.
Alongside domestic sales, the company's export business recorded a 2.6% growth.
'Nestle Malaysia continues to build on the international competitiveness of its industrial infrastructure, which is further enabled by the company's role as the largest Halal manufacturing hub for the Nestle group worldwide.'
For the quarter under review, Nestle Malaysia delivered a profit before tax of RM213mil and profit after tax of RM161.3mil, more than tripling the preceding 4Q24 profits and confirming the path to profit normalisation after a challenging 2024.
'This performance reflects the company's ability to navigate through a still complex operating environment with sustained pressure on commodity prices through focused efficiency measures and cost optimisation initiatives, as well as solid brand investments to further strengthen its market shares.
'While 1Q25 profit was solid, it moderately contracted against the strong baseline of 1Q24, reflecting an earlier phasing of marketing investments versus 2024, as well as the prudent approach to pricing amidst soaring prices of key commodities, as the company remains mindful of mitigating as much as possible the impact on the purchasing power of the Rakyat.'
Nestle Malaysia chief executive officer Juan Aranols said the first quarter results were encouraging and represented an important step in the group's journey back to healthy growth levels and profit normalisation after some challenges in the previous quarters.
'Amidst market volatility and intense competition, we continue to drive solid brand plans with effective execution across all channels online and offline.
'We have seen solid performance throughout the Chinese New Year and Ramadhan / Raya seasons across business segments.'
As the company navigates through 2025, Aranols said Nestle Malaysia remains vigilant of the multiple factors of volatility in the global market that may impact business conditions, while staying committed to its promise of providing nutritious, great-tasting Halal products that meet Malaysians' needs across all life stages.
'Additionally, we are driving automation and digitalisation within our organisation as key enablers of agile decision-making and savings, which in turn fund brand investments and innovations to strengthen market leadership.
'This is what we call the virtuous circle of profitable, sustainable growth, always anchored on a strong understanding of Malaysians' value expectations.'
While the operating environment continues to present challenges, Aranols said the signs the company is observing in terms of improved consumer sentiments are encouraging.
'As guided earlier, we are confident in returning to healthy growth levels by the first half of 2025, and consolidate the normalisation of our profitable and sustainable growth path.
'We will continue to invest in product innovation and in enhancing our capabilities at all levels - manufacturing, logistics, commercial, etc.'
As the group has done throughout its 113 years in Malaysia, Aranols said Nestle Malaysia will continue to be a positive force contributing to the wellbeing of the Rakyat.
'Building on our strong foundation in the nation, we are confident on this outlook, while we carefully monitor global geopolitical and market developments that may affect broader economic conditions.'
