25/07/2025

BIZ & FINANCE FRIDAY | JULY 25, 2025

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Nestle Malaysia posts healthy Q2 performance o Sales and profit

AME REIT net property income rises on expanded portfolio, higher rental rates PETALING JAYA: Industrial REIT AME Real Estate Investment Trust (AME REIT) recorded a 11.5% increase in net property income to RM12.7 million in the first quarter ended June 30, 2025 (Q1’26) from RM11.4 million in the previous corresponding quarter (Q1’25). The growth was driven by a 14.7% rise in rental income to RM14.1 million from RM12.3 million previously, attributed to contributions from two industrial properties acquired in the fourth quarter of the previous financial year, as well as higher rental rates from tenancy renewals. AME REIT will pay out RM10.4 million from distributable income for Q1’26, equivalent to a distribution per unit (DPU) of 1.96 sen reflecting a 7.1% quarter-on-quarter (q-o-q) increase in DPU from the preceding quarter’s 1.83 sen, and a 6.5% year-on-year (y-o-y) increase from Q1’25’s 1.84 sen. The income distribution will be paid on Aug 29. I REIT Managers Sdn Bhd CEO and executive director Chan Wai Leo said its Q1’26 performance demonstrates strong operational momentum, underpinned by newly acquired properties, high occupancy and positive rental reversions across its portfolio as it enters FY2026. “Our expanding portfolio will drive stable performance and sustainable growth, supported by a resilient industrial property sector. Furthermore, having recently completed the acquisition of i-TechValley 34 on July 10, 2025, we expect another four fully-leased properties in i-Park @ Senai Airport City and i-TechValley at SILC to complete this financial year. This pipeline strengthens our portfolio and boosts near-term rental income.” AME REIT’s portfolio comprised 39 invest ment properties, including 36 industrial properties with total agreed lettable area of 2.1 million sq ft and three industrial-related properties as at June 30. The properties are primarily located across AME Group’s industrial parks in Iskandar Malaysia, namely i-Park @ Indahpura, i-Park @ Senai Airport City, i-Park @ SILC, and i-TechValley at SILC. Total portfolio market value amounted to RM773.5 million as at June 30. AME REIT continues to be well-positioned to capitalise on increasing demand for high-quality industrial spaces in Malaysia, on the back of sustained foreign and domestic direct investments.

commercial execution, the company’s core products performed well, complemented by product innovations that have been positively received by consumers, helping to sustain market leadership positions. In Q2’25, Nestle Malaysia continued to advance its environmental, social and gover nance efforts through impactful colla borations and sustainability initiatives. To further strengthen its commitment to responsible sourcing, the company signed a memorandum of understanding with the Malaysian Sustainable Palm Oil to uphold good trade and sourcing best practices that meet international requirements. Nestle further advanced its commitment to reenergise cocoa farming in Malaysia, as showcased during the Malaysian Inter national Cocoa Fair 2025 where the company reinforced its ambition to source 10,000 tonnes of locally grown cocoa by 2034. “Our focus remains on delivering shared value to both local communities and the environment. Each of these efforts is a step toward shaping a more inclusive, sustainable future for Malaysia,” said Aranols. “As we navigate through the second half of 2025, we remain confident in our ability to drive solid growth momentum and profit recovery through the coming quarters,” he said, adding that they are mindful and vigilant of the geopolitical uncertainties that may impact the business environment in Malaysia.

campaigns in the first quarter. Alongside domestic sales, the company’s export business accelerated, confirming Nestle Malaysia’s international competi tiveness, while continuing to leverage its role as the largest halal manufacturing hub for the Nestle Group worldwide. In a statement yesterday, the company said this performance underscores its ability to manage margins amid sustained volatility in commodity prices through the systematic application of the Nestle Virtuous Circle framework.

acceleration confirms recovery momentum

PETALING JAYA: Nestle Malaysia delivered positive sales growth for the first half of 2025, driven by solid acceleration in its second quarter ended June 30, 2025 (Q2’25). In Q2’25, the company recorded a

CEO Juan Aranols said, “The second quarter results validate our earlier guidance of returning to healthy growth by H1 2025. Amid market volatility and intense competition, we continued to drive strong brand plans with effective execution across all sales channels. We remain committed to continue honouring the trust

turnover of RM1.67 billion, an increase from RM1.52 billion in Q2’24. For the quarter, Nestle Malaysia delivered a higher profit before tax of RM148.6 million and profit after tax of RM112.1 million, both marking double-digit growth against the Q2’24 baseline. For the six months period to June 30, 2025, Nestle Malaysia’s net

Malaysians place in our brands and pro ducts, always halal-certified and proudly made in Malaysia, by Malaysians and for Malaysians.” Throughout the quarter, Nestle Malaysia maintained its focus on the strong drivers of preference for its brands and product offerings in an evolving marketplace, namely those associated with quality, taste and nutritional relevance. In combination with its wide distribution network and best-in-class

profit fell to RM273.45 million from RM289.11 million in H1’24 although revenue rose to RM3.44 billion from RM3.31 billion in the corresponding period in 2024. Nestle Malaysia announced a first interim dividend of 70 sen per share, the same amount as in the prior year. The strong sales momentum in the second quarter was broad-based across brands and reflects further sales progress following successful Chinese New Year and Ramadan/Hari Raya

Alibaba.com unveils package to help M’sian SMEs enter global markets PETALING JAYA: Alibaba.com, a global B2B e commerce platform, has introduced the Performance Guaranteed Package, a specially designed initiative to help newly onboarded small and medium-sized enterprises boost buyer confidence, increase visibility and achieve measurable export outcomes through the platform. under the National e-Commerce Strategic Roadmap led by Malaysia Digital Economy Corporation, Alibaba.com has introduced this package to address this dynamic environ ment. The programme is designed to help Malaysian SMEs compete in the global B2B e commerce arena and support businesses transitioning to an online export model. this offer, we aim to help Malaysian suppliers accelerate their presence in global trade and become more resilient in today’s dynamic supply-chain landscape,” said Alibaba.com. Malaysian business head Rocky Lu. The package is available exclusively to new Malaysian suppliers who have joined Alibaba.com within the last three months. By offering practical, low-risk programmes that help Malaysian SMEs reach new markets, Alibaba.com continues to play a key role in accelerating the digitalisation of Malaysia’s e commerce market. Betamek delivers strong first-quarter profit growth With the global B2B e-commerce market projected to reach US$20.9 trillion (RM88 trillion) by 2027, according to Research and Markets, and Malaysia targeting RM1.65 trillion in e-commerce transactions by 2025 “This Performance Guaranteed Package is more than just a promotional offer. It is a results-driven pathway for Malaysian SMEs to engage efficiently with global buyers. Through

PETALING JAYA: Betamek Bhd, an original design manufacturer and a player in electronics manufacturing services for the automotive industry, posted strong profit after tax growth to RM5.4 million for the first quarter ended June 30, 2025 (Q1’26) compared to RM4.9 million in the preceding year’s corresponding quarter (Q1’25). The company reported revenue of RM56.9 million for the quarter, marking a 13.8% increase compared to RM50 million in Q1’25. The growth was mainly attributable to higher sales of vehicle accessories and the initial contributions from industrial instruments and consumer electronics, reflecting early success from Betamek’s diversification strategy. Profit before tax rose to RM7.2 million, up 12.1% from the same period last year. The group’s gross profit margin expanded to 18.4%, compared to 17.2% previously, supported by stronger cost manage ment and favourable currency movements. The vehicle audio and visual products segment continued to be the primary revenue contributor, accounting for RM38.9 million, or 68.4% of total revenue. The vehicle accessories segment contributed RM11.3 million, while the

non-automotive products segment accounted for RM6.6 million. The Malaysian market remained the group’s key focus, contributing 97.2% of total revenue, with the balance derived from Hong Kong and Japan. Compared to the immediate preceding quarter (Q4’25), revenue declined marginally by 4.8% from RM59.7 million, mainly due to reduced working days during festive periods. Despite the seasonal impact, the group maintained a strong profit before tax margin of 12.6%, slightly higher than the 12.1% recorded in the previous quarter, reflecting continued operational efficiency. However, the gross profit margin improved by 0.81% due to favourable currency movement in US dollar and China’s yuan in the current quarter. Betamek’s board has declared a first interim single-tier dividend of one sen per share for the financial year ending March 31, 2026. The ex date for the dividend is Aug 6, with payment scheduled for Aug 20. Executive director Muhammad Fauzi Abd Ghani said, “We’re pleased to begin the financial year on solid footing, driven by ongoing progress in our diversification strategy and operational

The Malaysian market contributed 97% of Betamek’s total revenue in the first quarter, with the balance derived from Hong Kong and Japan.

improvements, particularly at Sanshin Malaysia. This performance reflects our ability to adapt and grow sustainably even as the market normalises following a record year. We remain

focused on strengthening our customer base, investing in automation, and developing innovative product solutions across both automotive and non-automotive sectors.”