PETALING JAYA: Nestle (M) Bhd
remains optimistic about domestic-driven demand this year, which would sustain consumer spending in the country.
Strong domestic consumption of its products and solid export growth had grown the company in the year before, allowing it to close the year at near its record high financially.
In its financial year ended Dec 31, 2025 (FY25), the group sustained its performance with revenue rising to RM6.88bil, marking a 10.5% increase from the previous year as domestic demand held firm and exports surged.
This brings it close to its historical high recorded in 2023 on consistent execution, product innovation and sustained demand for its halal-certified offerings.
Domestic sales were Nestle Malaysia’s primary growth driver, supported by the company’s strong brand positioning and wide product portfolio catering to multiple consumer segments, the group said in its annual report, released yesterday.
The group noted that its “made in Malaysia, by Malaysians, for Malaysians” strategy continued to resonate well with households nationwide.
Nestle Malaysia said it maintained resilience through prudent cost management and operational efficiencies amid a challenging environment due to cost pressures and cautious consumer spending.
The company has been investing heavily to beef up its production infrastructure, with RM1bil deployed from 2022 to 2024.
“In 2025, capital expenditure focused on strengthening supply chain resilience and improving environmental and operational efficiency,” it said.
A key highlight was the launch of Nescafe Espresso Concentrate at its Sri Muda factory, a product innovation with global significance for the Nestle group which further cements Malaysia’s role as a regional production hub.
Meanwhile, it said digitalisation and artificial intelligence (AI) also played an increasing role in driving efficiencies across operations from automated stock management to real-time production tracking and AI-enabled safety systems.
The group said it intensified execution across both physical retail and eCommerce channels, expanding visibility and availability while adapting to evolving consumer behaviour.
It also streamlined its product portfolio and refined marketing investments to maximise returns, while continuing to build workforce capabilities to support digital transformation.
These efforts, the company said, have enabled faster decision-making and improved service delivery across its value chain.
In its most recent fourth quarter, the group’s net profit surged to RM125.53mil from RM41.1mil in the year-ago quarter, while earnings per share climbed to 53.53 sen from 17.53 sen previously.
The group’s net profit was also higher in the year-to-date period, rising to RM513.03mil from RM415.62mil in the previous year.
Chief executive officer Juan Aranols said in a statement last month that its performance is a testament to the group’s strong connection and relevance of our brands with all Malaysians.
