Nestlé (Malaysia) (NESTLE) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 was RM1.77 billion, down 0.8% year-over-year, with export sales up 8.8% and domestic sales recovering.

• Profit before tax was RM213.0 million, down 17.8% year-over-year, impacted by earlier marketing investments and high commodity prices.

• Profit after tax was RM161.3 million, a 17.5% decrease year-over-year.

• Sequentially, revenue rose 20.1% and profit before tax increased 285.8% from Q4 2024, driven by festive season activities.

• No dividend was proposed for the quarter.

Financial highlights

• Gross profit for Q1 2025 was RM547.3 million, down 8.1% year-over-year.

• Operating profit was RM229.5 million, a 16.1% decrease year-over-year.

• Basic earnings per share was 68.80 sen, compared to 83.37 sen in Q1 2024.

• Net assets per share stood at RM2.29 at quarter end, down from RM2.33 at the previous year end.

• Effective tax rate for the quarter was 24.3%, slightly above the statutory rate.

Outlook and guidance

• The group aims to return to healthy growth by H1 2025, focusing on product innovation and manufacturing enhancements.

• Ongoing monitoring of global geopolitical and market developments is emphasized.