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Nestlé Malaysia sees resilient FY26 despite volatility; Q1 profit up 27%

PETALING JAYA: Nestlé (Malaysia) Bhd expects to deliver resilient FY2026 despite volatile operating environment, supported by its strong business fundamentals, diversified portfolio and supply chain capabilities.

CEO Juan Aranols said the group remains confident of sustaining performance in 2026 despite the volatile external environment.

“Our diversified portfolio, extensive local manufacturing footprint and broad distribution network, in combination with our downstream supply chain capabilities, provide a solid foundation to navigate this environment and deliver another year of resilient commercial and financial results,” he said in a statement.

He added that the group will continue to focus on keeping its brands relevant and accessible, executing consistently across all channels, and managing costs with discipline.

“This approach allows us to maintain continuity in performance while positioning Nestlé Malaysia for further sustainable, long-term growth.”

Its net profit for the first quarter ended March 31, 2026 (Q1’26) rose 27.1% to RM205.12 million from RM161.34 million a year earlier, marking its highest quarterly earnings since Q1’22.

Revenue for the period increased 6.3% to RM1.88 billion from RM1.77 billion.

Nestlé said the performance was driven by higher sales, supported by stronger domestic demand during the festive period and continued contribution from export markets, alongside disciplined cost management and operational efficiencies.

Lower prices of key commodities such as coffee and cocoa also helped ease cost pressures and supported margins.

Aranols said the group remains focused on operational continuity amid heightened global uncertainty, supported by its diversified portfolio and supply chain network.

During the quarter, Nestlé strengthened its local sourcing ecosystem through its Farmer Connect programmes, covering key raw materials such as chilli, paddy, coffee and cocoa to enhance supply reliability and support food security.

The group also expanded its nationwide Ramadan outreach, distributing nutritious meals and food kits to over 300,000 Malaysians.

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