FOR the first half of financial year 2026 (1HFY26), Nestle’s revenue rose to RM3.69 bil, +7.5% year-on-year (yoy), while core profit after tax and minority interest increased to RM361.3 mil (+25.1%yoy).
This accounts for 64% of MBSB Research’s full-year forecast and 60% of consensus.
The better-than-anticipated results were supported by solid revenue growth across its business segments, disciplined cost controls and improved operational efficiency.
Management also attributed the performance to resilient domestic consumption and steady export demand.
Nestlé declared an interim dividend of 80.0 sen per share, up from 70.0 sen per share in the same period last year.
The higher payout underscores the company’s strong defensive dividend appeal and signals management’s confidence in sustaining earnings momentum for the remainder of the financial year. The dividend is scheduled to be paid on Oct 1, 2026.
By segment, Food & Beverages revenue rose +9.1%yoy to RM1.45 bil, while Others increased +6.8%yoy to RM359.4 mil.
Gross profit rose +19.7% yoy to RM594.2 mil in quarter two financial year 2026 (2QFY26), with GPM expanding +3.0ppts yoy to 32.8%, reflecting better cost management and efficiencies across the value chain.
“We turn more positive on Nestlé’s outlook following the strong 1HFY26 delivery,” said MBSB.
Management remains focused on strengthening core brands, accelerating innovation and expanding across channels, while continuing to invest in digitalisation, and automation.
MBSB also sees improved earnings visibility from resilient staple demand, stronger brand equity, and operational efficiencies.
While commodity volatility, FX movements and consumer downtrading remain key risks, Nestlé’s ability to defend margins through scale, brand strength and portfolio depth supports our earnings upgrade.
That said, MBSB upgrades the stock to Buy.—July 29, 2026
Main image: jestafreak.com
