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Sales and profit recovery over previous quarters with market share gains
Petaling Jaya, April 28, 2025 - As per the Company’s earlier guidance to return to healthy growth levels latest by the end of H1 2025, Nestlé Malaysia kicked off 2025 with encouraging results for its first quarter ended 31 March 2025 (Q1 2025). The Company recorded a Turnover of RM1.77 billion for the quarter under review, matching the robust sales figures in Q1 2024 and reflecting a 20.1% growth compared to Q4 2024. 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.
Alongside domestic sales, the Company's export business recorded a 2.6% growth. Nestlé 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 Nestlé Group worldwide.
For the quarter under review, Nestlé Malaysia delivered a Profit Before Tax of RM213.0 million and Profit After Tax of RM161.3 million, more than tripling preceding Q4 2024 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 Q1 2025 profit was solid, it moderately contracted against the strong baseline of Q1 2024, reflecting an earlier phasing of marketing investments vs 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.
Mr. Juan Aranols, Chief Executive Officer of Nestlé Malaysia said, "The first quarter results are encouraging and represent an important step in our 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. We continue to thank Malaysians for the very strong presence of our brands in their daily life. We remain committed to continue honouring this trust through our large portfolio of brands and products, always Halal-certified and made in Malaysia, by Malaysians and for Malaysians."
Throughout the quarter, Nestlé Malaysia maintained its focus on ensuring the relevance of its brands and product offerings in an evolving marketplace. The Company's core products performed well, complemented by product innovations that have been positively received by consumers, helping to sustain solid market leadership positions. Notably, MAGGI launched its Air Fryer marinade mixes series to support modern cooking, empowering consumers to effortlessly prepare delicious home-cooked meals. Additionally, Nestlé expanded its portfolio focused on healthy longevity with the introduction of NESTLÉ OMEGA GOLD, while MILO unveiled its innovative MILO Biscuits, adding a unique offering to its product range.
"These results reflect our unwavering commitment to delivering high quality Halal-certified products that meet Malaysians’ quality, taste and nutrition expectations. As we navigate through 2025, we remain vigilant of the multiple factors of volatility in the global market that may impact business conditions, while staying committed to our 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," Mr. Aranols added.
In Q1 2025, Nestlé Malaysia also kept a solid pace in its ESG initiatives, including the expansion of its Project SAVE waste collection beyond Klang Valley to Penang Island. Additionally, the MILO Energy for Good programme continued to expand with the donation of durable, eco-friendly classroom furniture and sports equipment made from recycled materials, focusing on schools in flood-prone regions of the East Coast. During Ramadan, Nestlé partnered with local organisations to provide RM1.5 million in food aid to over 20,000 families, underscoring its commitment to community support through various outreach initiatives. This included the distribution of more than 300,000 servings of Bubur Lambuk to underserved communities nationwide, continuing MAGGI's 20-year tradition of giving back. Through rapid action and involvement of its Nestlé Cares Volunteers, Nestlé Malaysia was also amongst the first responders to provide immediate relief to the families impacted by the Putra Heights gas pipeline explosion.
This year also marks the 75th anniversary of MILO in Malaysia, which continues its mission of energising the nation and inspiring active lifestyles and sports/athletics achievement through various initiatives, including the iconic MILO Malaysia Breakfast Day Run held in multiple states, bringing communities together.
“These sustainability and community efforts remain integral to our purpose as we strive to create shared value for all stakeholders," said Mr. Aranols.
Outlook
"While the operating environment continues to present challenges, the signs we are observing in terms of improved consumer sentiments are encouraging. As guided earlier, we are confident in returning to healthy growth levels by H1 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 we have done throughout our 113 years in Malaysia, we 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," concluded Mr. Aranols.
About Nestlé Malaysia: Nourishing Malaysians for Over a Century
Since 1912, Nestlé has been dedicated to nourishing Malaysians and building their trust through our high-quality brands and products. We contribute to food security as well as to the health and well-being of the Rakyat through our trusted brands and a long-term commitment to Malaysia in the form of investments, employment, and various initiatives that uplift local communities. Today, we operate six factories, employing over 5,000 Malaysians, and we are the Halal Centre of Excellence for Nestlé globally. We are committed to providing halal, nutritious, and high-quality products with sustainability at the heart of our business practices - Made in Malaysia, by Malaysians, for all Malaysians.
As the world's largest food and beverage manufacturer, with our headquarters based in Switzerland, Nestlé operates in over 180 countries. With a workforce of over 270,000 dedicated employees, we are driven by our purpose to unlock the power of food, enhancing the quality of life for everyone, both today and for future generations. Our commitment to nutrition, health, and wellness guides our performance, ensuring we deliver on our promise of GOOD FOOD, GOOD LIFE.
To discover more about our century-long journey of nourishing Malaysians, please visit our website at https://www.nestle.com.my/ask-nestle/we-are-nestle.
For more information, please contact:
Shaheen Zaffar
Nestlé Malaysia
Tel: (+603) 7965 6456
E-mail: [email protected]
Anis Farisha or Yasmin Kadir
acorn communications
Tel: (+603) 7958 8348
E-mail: [email protected]