Latest news with #RM1.67bil
The Star
an hour ago
- Business
- The Star
Nestle confident of profit upswing in 2H25
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.
The Star
16 hours ago
- Business
- The Star
Strong sales momentum underpins Nestle Malaysia's higher bottomline in 2Q
Juan Aranols, CEO of Nestlé Malaysia —ONG SOON HIN /The Star Reporter Kiren KUALA LUMPUR: Nestle (Malaysia) Bhd has made good on its earlier guidance that it would return to healthy growth by the first half of 2025. In the second quarter ended June 30, 2025 (2QFY25), the food and beverage firm posted a net profit of RM112.11mil, up from RM93.6mil in the same quarter in 2024. Earnings per share rose to 47.81 sen from 39.91 sen in the comparative quarter. The group reported revenue of RM1.67bil, improved from RM1.52bil in 2QFY24, with strong sales momentum across brands and further sales progress following the festive campaigns in the preceding quarter. Nestle Malaysia CEO Juan Aranols attributed the positive performance to the company's ability to manage margins amid sustained volatility in commodity prices through the systematic application of the 'Nestlé Virtuous Circle' framework. He explained the approach as a relentless focus on efficiency and cost optimisation to fund brand investments that drive growth and market share gains. "Amidst market volatility and intense competition, we continued to drive strong brand plans with effective execution across all sales channels," he said. "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." Moving forward, Aranols said the group remains confident in the second half of 2025 as it drives solid momentum and profit recovery through the coming quarters. "We are mindful and vigilant of the geopolitical uncertainties that may impact the business environment in Malaysia," he added. During the six months period to June 30, 2025, Nestle's net profit slipped to RM273.45mil from RM289.11mil in 1HFY24, while revenue was higher at RM3.44bil from RM3.31bil in the same period in 2024. The board of directors declared an interim dividend of 70 sen with an entitlement date of Sept 3, 2025, and payment date on Oct 2, 2025.
The Star
12-06-2025
- The Star
MACC grills Tan Sri over alleged sukuk fund misuse
KUALA LUMPUR: The Malaysian Anti-Corruption Commission (MACC) has questioned a Tan Sri for six hours in connection with an investigation into the alleged misappropriation of sukuk funds meant for a Klang Valley highway project. MACC Chief Commissioner Tan Sri Azam Baki said the statement was recorded yesterday and concluded at 3pm. Another session is scheduled for today. Due to health reasons, the questioning took place at the Tan Sri's house in the Klang Valley. To date, MACC has interviewed 52 witnesses, including the Tan Sri and his family members. A separate raid was also conducted at his residence in Melaka, although no items were seized. The investigation centres on the suspected misappropriation of sukuk bonds issued to finance the construction of the highway. On June 3, MACC seized a luxury condominium, a plot of land valued at RM24.5mil, and nine vehicles worth RM7.65mil. Authorities also froze 14 personal bank accounts with RM4.5mil and eight company accounts holding RM33mil. In addition, anti-graft officers seized luxury watches worth approximately RM25mil, handbags valued at RM3mil, jewellery and diamonds worth RM6mil, four horses estimated at RM400,000, and premium alcoholic beverages valued at RM3mil. Azam previously disclosed that between 2016 and 2020, investigations revealed misconduct involving RM1.35bil in approved sukuk funds. This included false claims totalling RM360mil, RM416mil, and RM50mil through other bank facilities. 'The RM1.67bil highway project also failed to meet its completion schedule. Investigations are now focused on RM12bil in alleged bribes paid to certain parties as an inducement to facilitate the movement of funds out – and back – to the suspect,' Azam said in a June 3 statement, adding that the funds are also believed to have been used for money laundering activities. — Bernama
The Star
04-06-2025
- Business
- The Star
Assets worth RM143mil linked to highway sukuk misuse seized
KUALA LUMPUR: The Malaysian Anti-Corruption Commission (MACC) has seized assets linked to the misuse of sukuk funds of the construction of a highway in Klang Valley believed to be owned by a highway concessionaire with a Tan Sri title totalling RM143mil during an operation conducted last week. Its chief commissioner Tan Sri Azam Baki said the seizures include 14 individual accounts totalling RM4.5mil, eight company accounts totalling RM33mil, luxury condominium and land worth RM24.5mil, nine cars worth RM7.65mil, and 13 cars that have yet to be handed over to the investigation team. Other items seized include luxury watches worth RM25mil, handbags worth RM3mil, jewellery and diamonds (RM6mil), four horses (RM400,000), alcoholic beverages (RM3mil), foreign assets worth more than RM15mil and around RM20mil in gambling activities. "Preliminary investigations revealed there was misconduct between 2016 and 2020 involving approved sukuk funds of about RM1.35bil, involving false claims of about RM360mil and RM416mil and RM50mil in other bank facility loans. "The RM1.67bil highway project also failed to be completed according to schedule and investigations are focused on bribes worth RM12bil paid to certain parties as inducement in helping the cash flow out and back to the suspect,' he said in a statement on Tuesday (June 3), adding that the proceeds were also believed to have been used in money laundering activities. He explained that to embezzle the funds, the parties involved were believed to have used professionals such as auditors, financial experts, engineers and shell companies. "Until now, the MACC has yet to take the Tan Sri's statement as he is in a private hospital ward and today the investigating officer will get confirmation from the doctor on the status of the Tan Sri's health before recording his statement. "Meanwhile, the number of witness statements stands at 45, and those witnesses who have given their statements have been asked to provide further statements,' he said, adding that the investigating team is also tracking down luxury vehicles and properties belonging to the Tan Sri abroad, including in London and Switzerland. The investigation is focused on the true amount of luxury liquor kept by the Tan Sri and the possibility that funds have been transferred to other accounts, he said. He added that an asset declaration notice has been handed to the Tan Sri and other related parties. - Bernama
