Cost-base efficiencies set to buoy Nestle
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PETALING JAYA: An increase in operating margins is expected for Nestle (Malaysia) Bhd as restructuring efforts intensify and the food and beverage group continues to streamline its cost base, according to AmInvestment Bank Research. The research house said Nestle Malaysia's operating margin had already improved by 2.1 percentage points half-on-half in the first half of financial year 2026 (1H26), with further benefits expected as its parent's global restructuring programme progresses. "We expect white-collar job cuts to accelerate in Malaysia, translating into a step-up in operating margin, as seen in 1H26," it said. Nestle S.A.'s restructuring programme, announced in October 2025, involves 16,000 job cuts globally, comprising 12,000 white-collar positions and 4,000 manufacturing and supply-chain roles, supported by shared-service models, automation and artificial intelligence. "Restructuring remains underappreciated. When Nestle S.A.'s new chief executive officer took over, a major overhaul plan was announced to focus on profitability and prune the portfolio." ... Full Article on TheStar
