Nestle (Malaysia) Bhd is now showing signs of a strong recovery following last year's consumer boycott when it recorded a 20% jump in net profit for the second quarter ended 30 June 2025 (Q2 FY2025).
According to a report to Bursa Malaysia, the food and beverage company recorded a net profit of RM112.11 million, compared to RM93.59 million in the same period last year. Revenue increased 9.5% to RM1.67 billion, driven by strong domestic and export sales growth.
However, for the first six months of this financial year, net profit declined 5.4% to RM273.45 million compared to RM289.11 million previously, although overall revenue increased 4% to RM3.44 billion.
The second-quarter performance that beat analysts' expectations has sparked investor interest, pushing Nestle's share price up 11% or RM8.60 in two days to close at RM85.50. This has brought the company's market value to RM20.05 billion.
MIDF Research said domestic growth remains positive thanks to brand strength and new product introductions, while exports remain strong with Nestle Malaysia continuing to be the group's global halal hub.
Meanwhile, RHB Research has taken a more positive stance by upgrading its stock recommendation to 'buy' from 'neutral' previously.
The research firm described Nestle's first-half performance as exceeding expectations, driven by profit margin expansion and recovering consumer sentiment.
RHB also stated that normalised demand has put Nestle on a strong recovery path.
In the current volatile market environment, defensive-profile stocks like Nestle are seen as investors' top picks.
