PETALING JAYA: Nestle (M) Bhd
will continue to focus on keeping its brands relevant and accessible – executing consistently across all channels and managing costs with discipline.
Chief executive officer Juan Aranols said this approach allowed the company to maintain continuity in performance, while positioning the group for further “sustainable, long-term growth”.
“While the external environment in 2026 is defined by volatility and increased uncertainty, we are confident in the strength of our fundamentals and our ability to ensure continuity in this context.
“Our diversified portfolio of trusted brands, extensive local manufacturing footprint and broad distribution network, in combination with our downstream supply chain capabilities, continue to provide a solid foundation to navigate this environment and deliver another year of resilient commercial and financial results,” he said in a statement.
Nestle’s sales for the first quarter of 2026 reached RM1.88bil, representing a 6.3% increase compared to the corresponding quarter of 2025.
The company said the performance reconfirmed its solid fundamentals and its ability to execute with discipline and consistency in a volatile operating environment.
“Growth during the quarter was primarily supported by solid growth in domestic sales, up 7.4% year-on-year, while export markets continued to contribute positively, increasing by 2.5%, though at a more moderate pace than in previous quarters.
“Pre-tax profit for the quarter increased to RM271.9mil, while profit after tax rose to RM205.1mil, progressing significantly compared to the same period last year.”
Nestle said the improvement was driven by solid topline growth, enabled by strong commercial execution and brand activations throughout Chinese New Year and Ramadan/Aidilfitri, alongside disciplined cost management and ongoing operational efficiencies across the value chain.
“This was further supported by a downward correction in the prices of key commodities such as coffee and cocoa.
“Overall, these actions underscore the company’s ability to manage external cost pressures while maintaining a relentless focus on growth, with sustained investment in its brands and capabilities.”
Aranols said Nestle had delivered a solid start to the year, reflecting the resilience of its business and the strength of its household brands.
Meanwhile, RHB Investment Bank in a report said Nestle’s results met expectations, thanks to solid sales traction and cost control.
“We believe Nestle is well on track to another year of sustained resurgence, supported by accommodative government fiscal policy (cash handouts, subsidies, etc); improving consumer sentiment towards its brands; and disciplined cost control to lift profit margins.
“Geopolitical tensions could translate to cost inflation and supply chain disruptions, but Nestle’s entrenched fundamentals in scale of operations and global network should mitigate some of the impact.”
Notwithstanding the downside risks to consumer sentiment as a consequence of war-led disruptions, Nestle said consumption for staple food products should remain resilient, underpinned by wage growth and stable employment markets.
“This, together with Nestle’s quality product offerings and entrenched distribution channels will provide earnings visibility amidst the prevailing external uncertainties, in our view.”
