KUALA LUMPUR (April 25): Nestlé (Malaysia) Bhd’s net profit eased 3.9% year-on-year for the first quarter ended March 31, 2023 (1QFY2023), pressured by higher commodity prices and unfavourable foreign exchange rates, even as revenue improved.

Net profit declined to RM197.15 million for the quarter from RM205.18 million a year ago, on the back of an 8.8% growth in revenue to RM1.84 billion from RM1.69 billion, the food giant said in a stock exchange filing on Tuesday (April 25).

Earnings per share eased to 84.07 sen for 1QFY2023, from 87.50 sen previously.

Nestlé Malaysia chief executive officer Juan Aranols said while food commodity prices are expected to stay high through the first half of 2023 (1H2023), the management is optimistic that this will improve in 2H2023.

“Over the long term, we remain confident in the prospects of Malaysia, as demonstrated by our next wave of capital investments, with RM1.0 billion planned for the 2023-2025 cycle,” he said in a statement on Tuesday.

“As we move forward, we are dedicated to accelerating our ESG (environmental, social and governance) objectives, with clear plans in place. This includes reducing our carbon emissions directly by reducing our emissions and indirectly through our reforestation efforts, such as Project RELeaf.

“We will further phase out virgin plastics and support local farmers to transition towards regenerative agriculture through our Farmer Connect programmes. In tandem, to drive sustainable growth, we will continue to uphold the trust of Malaysians by reinforcing our capabilities to deliver products that consistently fulfil consumer expectations for quality, nutrition and taste,” he added.

Shares in Nestlé Malaysia closed RM1.90 or 1.4% higher at RM136.50 on Tuesday, giving the group a market capitalisation of RM32.01 billion.