KUALA LUMPUR: Nestlé (Malaysia) Bhd’s share price rose after its net profit for the second quarter of the financial year ending Dec 31, 2026 (2Q 2026) rose to RM155.01 million from RM112.11 million a year earlier.
At 10.32 am, Nestlé shares gained RM2.40 to RM96.06, with 69,500 shares changing hands.
In a filing with Bursa Malaysia yesterday, the food and beverage manufacturer reported that the higher net profit was attributed to broad-based topline growth, effective cost management and improved efficiencies across the value chain.
Besides that, its revenue for the quarter under review increased by 8.7 per cent to RM1.81 billion from RM1.67 billion previously, supported by resilient domestic demand, while export sales remained stable.
In a research note today, Kenanga Investment Bank Bhd (Kenanga IB) expects its sales momentum to remain largely at pre-boycott levels, supported by broad-based growth across key brands such as Milo, Maggi and Nescafe, and ongoing brand-building initiatives including the Kit Kat Formula 1 campaign and the recent Gaji Seumur Hidup campaign.
"While raw material costs, particularly cocoa and coffee beans, have rebounded in recent months, they remain down at 15 per cent and one per cent year-to-date, and we believe near-term margin risks remain manageable as management had previously guided for no price increases until at least 4Q FY2026,” it said.
Kenanga IB also expects gradual margin recovery to sustain in the near term, supported by continued operational efficiencies on higher sales volumes.
Meanwhile, Hong Leong Investment Bank (HLIB) believes the group is exceptionally well positioned to weather these headwinds anchored by a diversified portfolio of trusted brands, an extensive local manufacturing footprint, highly efficient downstream capabilities and disciplined cost management.
Kenanga IB maintained outperform call for Nestle with target price (TP) of RM106 from RM93.66 while HLIB maintained a ‘Buy’ call with the TP remaining at RM135. - Bernama
