Nestle confident of profit upswing in 2H25
PETALING JAYA: Nestle (M) Bhd , which recorded earnings growth in the second quarter of financial year ended June 30, 2025 (2Q25), remains upbeat on its outlook for the second half of financial year 2025 (2H25), supported by sustained brand strength, digitalisation and cost optimisation to drive profit recovery despite ongoing market headwinds.
Chief executive officer Juan Aranols said the company is confident that these efforts will continue to underpin growth and support recovery in the months ahead.
'As we navigate through 2H25, we remain confident in our ability to drive solid growth momentum and profit recovery through the coming quarters,' he noted in a statement.
He said while the company remains 'mindful and vigilant of the geopolitical uncertainties that may impact the business environment in Malaysia,' it is well-positioned to stay resilient by accelerating digitalisation and boosting efficiencies to fund brand investments and innovation.
'We will further accelerate our journey through rapid digitalisation and pursuing efficiencies that fuel brand investments and innovations to strengthen market leadership,' he said.
For 2Q25, Nestle's revenue rose 9.5% year-on-year to RM1.67bil from RM1.52bil, while net profit surged 19.8% to RM112.11mil from RM93.6mil.
The growth was underpinned by broad-based brand performance and continued momentum from festive campaigns in the previous quarter.
'Alongside domestic sales, the company's export business also accelerated, confirming Nestle's international competitiveness while continuing to leverage its role as the largest halal manufacturing hub for the Nestle group worldwide,' the statement noted.
For 1H25, revenue rose 4% to RM3.44bil from RM3.31bil in the same period last year, although net profit dipped 5.4% to RM273.45mil from RM289.11mil.
Nestle attributed its performance to margin management amid persistent volatility in commodity prices, 'through the systematic application of the Nestle Virtuous Circle framework.'
'This approach emphasises a relentless focus on efficiency and cost optimisation to fund brand investments that drive growth and market share gains,' it noted.
'The profit improvement also reflects solid top-line recovery, supported by a prudent approach to pricing amid cost increases,' the company said.
Aranols said the 2Q25 results validated the group's earlier guidance of returning to healthy growth in the 1H25.
'Amid market volatility and intense competition, we continued to drive strong brand plans with effective execution across all sales channels,' he added.
Nestle declared a first interim dividend of 70 sen per share during the quarter – unchanged from a year ago.
Throughout the quarter, the company maintained its focus on the key drivers of consumer preference for its brands and product offerings – particularly 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,' it added.
Nestle's shares closed 7% higher yesterday, up RM5.42 to RM82.32.
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Nestle (M) Bhd chief executive officer Juan Aranols. PETALING JAYA: Nestle (M) Bhd , which recorded earnings growth in the second quarter of financial year ended June 30, 2025 (2Q25), remains upbeat on its outlook for the second half of financial year 2025 (2H25), supported by sustained brand strength, digitalisation and cost optimisation to drive profit recovery despite ongoing market headwinds. Chief executive officer Juan Aranols said the company is confident that these efforts will continue to underpin growth and support recovery in the months ahead. 'As we navigate through 2H25, we remain confident in our ability to drive solid growth momentum and profit recovery through the coming quarters,' he noted in a statement. He said while the company remains 'mindful and vigilant of the geopolitical uncertainties that may impact the business environment in Malaysia,' it is well-positioned to stay resilient by accelerating digitalisation and boosting efficiencies to fund brand investments and innovation. 'We will further accelerate our journey through rapid digitalisation and pursuing efficiencies that fuel brand investments and innovations to strengthen market leadership,' he said. For 2Q25, Nestle's revenue rose 9.5% year-on-year to RM1.67bil from RM1.52bil, while net profit surged 19.8% to RM112.11mil from RM93.6mil. The growth was underpinned by broad-based brand performance and continued momentum from festive campaigns in the previous quarter. 'Alongside domestic sales, the company's export business also accelerated, confirming Nestle's international competitiveness while continuing to leverage its role as the largest halal manufacturing hub for the Nestle group worldwide,' the statement noted. For 1H25, revenue rose 4% to RM3.44bil from RM3.31bil in the same period last year, although net profit dipped 5.4% to RM273.45mil from RM289.11mil. Nestle attributed its performance to margin management amid persistent volatility in commodity prices, 'through the systematic application of the Nestle Virtuous Circle framework.' 'This approach emphasises a relentless focus on efficiency and cost optimisation to fund brand investments that drive growth and market share gains,' it noted. 'The profit improvement also reflects solid top-line recovery, supported by a prudent approach to pricing amid cost increases,' the company said. Aranols said the 2Q25 results validated the group's earlier guidance of returning to healthy growth in the 1H25. 'Amid market volatility and intense competition, we continued to drive strong brand plans with effective execution across all sales channels,' he added. Nestle declared a first interim dividend of 70 sen per share during the quarter – unchanged from a year ago. Throughout the quarter, the company maintained its focus on the key drivers of consumer preference for its brands and product offerings – particularly 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,' it added. Nestle's shares closed 7% higher yesterday, up RM5.42 to RM82.32.
