Nestlé India Ltd on Friday reported a profit of Rs 688.01 crore during the third quarter of FY25, posting a growth of 4.94 per cent in comparison to Rs 655.61 crore during the corresponding quarter of FY24, missing estimates. It posted revenue from operations at Rs 4779.73 crore, up 3.90 per cent as against Rs 4600.42 crore during the same period of previous financial year. Nestlé India said that the company delivered growth despite the challenging external environment. The company EBITDA stood at Rs 1103 crore.
According to a CNBC TV18 poll, Nestlé India was expected to report Q3 profit at Rs 709 crore and revenue for the quarter in review was estimated at Rs 4785 crore.
On a standalone basis, Nestlé India posted total sales of Rs 4762.1 crore and profit stood at Rs 696.1 crore.
Suresh Narayanan, Chairman and Managing Director, Nestlé India, said, “This quarter, 3 out of 4 product groups delivered healthy growth led by a combination of pricing and volume. Key brands continue to perform and this augurs well in a challenging environment. It was a quarter that was marked with food inflation, moderation in urban consumption, with gradual recovery in rural consumption. I would like to extend my heartfelt appreciation to my colleagues, distributors, retailers and partners for their tenacity and resilience, despite the prevailing external pressures.
He further added, “Our manufacturing capacity will witness a significant jump with the commissioning of the third Confectionery unit in Sanand factory to manufacture Kitkat towards fulfilling our ambition of Rs 5,800 crore capital expenditure between 2020-2025.”
Interim dividend declared
Nestle India board declared the company’s second interim dividend of Rs 14.25 per equity share of the face value of Re 1 each for the Financial Year 2024-25 on the entire issued, subscribed and paid-up share capital of the Company of 964,157,160 equity shares, which will be paid on and from 27th February 2025 to those members whose names appear in the Register of Members of the Company.
Q3 performance across categories
Nestlé India said that its powdered and liquid beverages business was the largest growth contributor this quarter, with high double-digit growth. Beverages retail surpassed Rs 2000 crore business in the last twelve months, spearheaded by Nescafé Classic, Nescafé Sunrise, And Nescafé Gold.
Nestlé India has also enhanced its distribution reach in the last twelve months amongst Food & Beverage companies. “The RUrban strategy continues to enhance our footprint. This is an essential element of the ‘penetration led growth’ strategy and has resulted in maximum contribution to the expansion of our distribution reach,” said Suresh Narayanan.
The confectionery recorded high single-digit growth with Kitkat delivering double-digit growth. Prepared Dishes and Cooking Aids posted high single-digit growth led by Maggi noodles, which returned to credible volume growth and Masala-ae-Magic which has had a strong, consistent performance on growth.
In the nutrition business, products for toddlers’ milk and specific nutritional needs continued to deliver strong performance, the company informed.
The Petcare business witnessed the highest growth this quarter since its integration into the Nestlé India business in 2022.
Nestlé India’s Out-of-Home business reported strong double-digit growth with significant acceleration in the food & beverage solutions portfolio. E-commerce continued its path of acceleration posting high double-digit growth and contributing 9.1 per cent to domestic sales. New products launched since 2015 now contribute to approximately 7 per cent of sales, it said.
Q3 performance across distribution channels
• E-commerce: Nestlé said that acceleration aided by quick commerce, consumer acquisition, festival activation and premiumization.
• Organized Trade: Retail business, it said, continued its growth journey led by Maggi noodles, beverages and overall premiumization.
• Out of Home (OOH): One of the fastest growing businesses driven by continued portfolio transformation and premiumization, robust customer acquisition and geographical expansion beyond metros and mega cities. Expanded presence with Nestlé Retail One Kiosks to 940+ across colleges, hospitals, and tourist hotspots.
• Export: The company registered strong growth across key international markets powered by nutrition, Instant Tea and confectionery while the coffee export continued to sustain double-digit growth. Nestlé Munch, Nescafé Sunrise, Maggi Masala-Ae-Magic were extended to new markets in the United States and the United Arab Emirates.