KUALA LUMPUR: Nestle (Malaysia) Bhd reported weaker earnings for the first quarter of the financial year 2025, attributed to higher marketing expenses earlier in the year and minimal price increases despite rising raw material costs.

The food and beverages manufacturer recorded a net profit of RM213 million for the period, a 17.5 per cent decline from RM195.5 million a year ago, according to a bourse filing today.

Revenue dipped slightly 0.8 per cent to RM1.77 billion from RM1.78 billion previously.

The company said growth of export sales remains robust at 8.8 per cent while domestic sales are on a good path of recovery across categories which reflects the successful planning and execution during the festive periods.

In a statement, Nestle Malaysia said it still focuses on ensuring the relevance of its brands and product offerings in an evolving marketplace throughout the quarter.

It stated that the core products performed well, complemented by product innovations that have been positively received by consumers, helping to sustain solid market leadership positions.

Nestle Malaysia chief executive officer Juan Aranols said that although the operating environment remains challenging, the company is encouraged by signs of improving consumer sentiment.

"We are confident in returning to healthy growth levels by the first half of this year and consolidate the normalisation of our profitable and sustainable growth path.

"We will continue to invest in product innovation and in enhancing our capabilities at all levels, including manufacturing, logistics and commercial, among others.

Building on strong foundation in the nation, Aranols said Nestle Malaysia is confident on its outlook, while carefully monitoring global geopolitical and market developments that may affect broader economic conditions.