KUALA LUMPUR (July 24): Nestlé (Malaysia) Bhd (KL:NESTLE) reported a near 20% increase in net profit for the second quarter, lifting its stock price to its highest in more than a month. 

Nestlé's share price surged nearly 7% to RM82, its highest since May 16, following the results announcement. At the last price, the locally listed unit of the Swiss multinational food conglomerate is worth over RM19 billion on Bursa Malaysia.

Net profit for the quarter ended June 30, 2025 (2QFY2025) increased to RM112.11 million, while earnings per share (EPS) for the quarter came in at 47.81 sen, compared with 39.91 sen a year ago.

The group attributed the earnings growth to a disciplined focus on operational efficiency and a prudent pricing strategy, which helped offset rising input costs.

Quarterly revenue rose 9.5% year-on-year to RM1.67 billion, supported by solid sales during festive campaigns and sustained consumer preference across its core food and beverage offerings.

Nestlé declared an interim dividend of 70 sen per share, similar to last year, with the ex-date on Sept 3 and payment on Oct 2.

Compared to the preceding quarter, net profit declined 31.2% from RM161.34 million, while revenue fell 5.6% from RM1.77 billion, primarily due to seasonality following Chinese New Year and Ramadan campaigns in 1QFY2025.

For the first half ended June 30, 2025 (1HFY2025), net profit slipped 5.4% to RM273.45 million from RM289.11 million in the previous corresponding period, despite revenue rising 4% to RM3.44 billion.

Basic EPS for 1HFY2025 stood at 116.61 sen, down from 123.29 sen a year earlier.

The board expects to maintain strong growth momentum in the second half, though it remains cautious of global geopolitical risks and commodity price volatility.

Nestlé’s food and beverage segment, comprising 80% of total sales, continued to drive performance, with the remaining 20% from nutrition, Nestlé Professional, Nestlé Health Science and Nespresso.

The group deepened its environmental, social and governance initiatives by expanding plastic recycling and youth development programmes while reaffirming its commitment to local sourcing and halal standards.

As at June 30, 2025, the group’s net assets per share stood at RM2.74, up from RM2.33 at end-December 2024.