PETALING JAYA : Nestlé (Malaysia) Bhd has reported a positive start to the year, posting encouraging results for the first quarter ended 31 March 2025 (1Q25). The company recorded a turnover of RM1.77 billion during the quarter under review, maintaining the strong sales performance achieved in 1Q24 and marking a 20.1% increase compared to the fourth quarter of 2024 (4Q24).
Nestlé Malaysia attributed the broad-based sales momentum to successful planning and execution of its Chinese New Year and Ramadhan/Hari Raya campaigns across its portfolio of brands.
The company’s export business also registered growth, recording a 2.6% increase, driven by the competitiveness of its industrial infrastructure and its position as the largest halal manufacturing hub within the global Nestlé network.
For 1Q25, Nestlé Malaysia reported a profit before tax of RM213 million and a profit after tax of RM161.3 million, more than tripling the profits achieved in the preceding quarter, reflecting the company’s steady progress towards profit normalisation following a challenging 2024.
“This performance demonstrates our ability to navigate a complex operating environment, characterised by ongoing pressures on commodity prices,”
the company stated.
“Focused efficiency measures, cost optimisation initiatives, and sustained investments in brand equity have underpinned the solid results.”
While the first-quarter profit remained strong, the company noted a moderate contraction compared to the high baseline set in 1Q24. This was attributed to an earlier phasing of marketing investments compared to the previous year, alongside a prudent pricing strategy aimed at cushioning consumers against surging commodity prices.
Nestlé Malaysia’s Chief Executive Officer, Juan Aranols, said the first-quarter performance marked a significant step in the group’s journey towards restoring healthy growth levels and sustainable profitability.
“Amid continued market volatility and intense competition, we are executing solid brand plans effectively across both online and offline channels,”
he said.
“Our campaigns during the Chinese New Year and Ramadhan/Hari Raya periods have delivered robust results across all business segments.”
Looking ahead, Aranols emphasised that Nestlé Malaysia remains alert to the ongoing global market uncertainties that could impact business conditions. Nevertheless, the company remains committed to delivering high-quality, nutritious, and great-tasting halal products tailored to meet the diverse needs of Malaysians at every life stage.
He further highlighted that automation and digitalisation are central to Nestlé Malaysia’s strategy, enabling greater agility in decision-making and operational efficiencies that fund continued investments in brand building and innovation.
“This virtuous circle of profitable, sustainable growth is anchored firmly on a deep understanding of the evolving value expectations of Malaysian consumers,”
Aranols said.
Despite the challenging operating environment, Nestlé Malaysia is encouraged by signs of improving consumer sentiment. The group remains confident in its guidance of returning to healthy growth levels by the first half of 2025 and consolidating a sustainable, profitable growth trajectory.
“We will continue investing in product innovation and in strengthening our capabilities across manufacturing, logistics, and commercial operations,”
Aranols added.
Celebrating its 113th year of presence in Malaysia, Nestlé remains committed to contributing positively to the nation’s development, while remaining vigilant to global geopolitical and market developments that could influence broader economic conditions.
–The Star
