Nestlé (M) BHD Reports First Quarter Results for 2025

Kuala Lumpur, April 28, 2025 — Nestlé (M) Bhd, a wholly owned subsidiary of the Swiss multinational Nestlé S.A., has reported its financial results for the first quarter of 2025. The company, which specializes in food, beverage, and personal care products, experienced a 17.48% decline in net profit, with figures falling to MYR 161.34 million from MYR 195.51 million in the same period the previous year. This decrease is attributed to higher input costs and increased marketing expenses, despite a marginal 0.8% decrease in quarterly revenue, which stood at MYR 177.24 million.

Market Challenges and Strategic Responses

The company’s CEO, Juan Arano, highlighted the challenging operating environment characterized by downward pressure on commodity prices and intense market competition. Despite these challenges, Nestlé (M) Bhd has maintained a strong market presence, with core products performing well and new product innovations receiving positive consumer feedback. The company’s strategic focus on ensuring all sales channels contribute effectively has been a key factor in sustaining its market leadership.

Sales Performance and Growth

First-quarter sales saw an 8.8% increase in export sales, reflecting the company’s successful promotional strategies during festive periods. Domestic sales across various categories also showed a positive recovery trend. Compared to the previous quarter, the company’s business grew by 20.1%, driven by strong sales momentum across brands during the Chinese New Year and Ramadan Hari Raya.

Future Outlook

Looking ahead, Nestlé (M) Bhd aims to return to a healthy growth trajectory in the second half of 2025. The company plans to continue investing in product innovation and enhancing manufacturing capabilities. Despite the external challenges, the company remains optimistic about consumer recovery trends and is committed to driving its brand plans efficiently across all channels.

Sustainability Initiatives

In addition to financial performance, Nestlé (M) Bhd continues to lead in sustainability efforts. The company has been proactive in transitioning from plastic straws to paper straws and localizing its supply chain to reduce environmental impact. These initiatives are part of Nestlé’s broader commitment to environmental, social, and governance (ESG) responsibilities.

Market Position and Share

Nestlé’s products, including Maggi, Milo, and Nescafe, hold significant influence in the Malaysian market. Maggi dominates the instant noodle market with a 40% share, while Milo and Nescafe are consumed at an average of 800,000 cups daily. These figures underscore the company’s substantial impact on daily consumer habits and its ongoing efforts to provide nutritious and affordable food and beverages.

Conclusion

Despite the decline in net profit, Nestlé (M) Bhd’s first-quarter results reflect resilience and strategic adaptability in a complex market environment. The company’s focus on innovation, sustainability, and market leadership positions it well for future growth and continued success in the Malaysian market.