The dip in profit was attributed to higher commodity prices and unfavourable exchange rates, but various cost mitigation measures also helped to minimise the impact on consumers and to protect margins.

Revenue for the quarter rose 8.8% to RM1.84 billion from RM1.69 billion in the same period last year, thanks to increases in both domestic and export sales.

Nestle said that while food prices were expected to remain high in the first half of this year, it remained optimistic that it would improve in the following six months.

The company said its next wave of capital investments of RM1 billion for the 2023 to 2025 cycle demonstrated its continued confidence in its prospects in Malaysia.

It also said it would continue with its environmental, social and governance objectives, including reducing carbon emissions, and its reforestation project RELeaf.

“We will further phase out virgin plastics and support local farmers to make the transition to regenerative agriculture through our Farmer Connect programmes,” it added.

At the close of trading today, Nestle’s share price stood at RM136.50, up RM1.90 or 1.4% for the day, valuing the company at RM32.01 billion.