Companies Economy Live April 27, 2025 0 Comments

Nestle India Q4 Results: Net profit down 6.5%, revenues up 4.5%

Nestle India posted a consolidated net profit of ₹873.46 crore for Q4FY25 down 6.5 per cent over ₹934.17 crore in the corresponding quarter in the previous fiscal. Consolidated revenue from operations grew by 4.5 per cent to ₹5503.88 crore in March quarter year-on-year.

Total sales and domestic sales for the quarter increased by 3.7 per cent and 4.2 per cent, respectively in the quarter. The company’s board recommended a final dividend of ₹10 per cent.

Suresh Narayanan, Chairman and Managing Director of Nestlé India said the company witnessed double-digit growth in beverages and confectionery with 3 out of 4 product groups delivering healthy growth during the March quarter. “Our domestic sales crossed ₹5,235 crore-mark, the highest ever in any quarter ,supported by improving volume growth.”

He noted that powdered and liquid beverages was the largest growth contributor recording high double-digit growth. Nescafe gained market share and brought more than 5.1 million households into the coffee category. Nescafe Ready-to-Drink cold coffee range, which was one of the fastest growing segments globally, expanded its new range to India this year. “Driven by cold coffee consumption among Gen Z and Millennials, it is creating entirely new coffee-drinking occasions,” Narayanan added.

Confectionery grew at a high single-digit pace both in value and volume driven by Kitkat. Prepared Dishes and Cooking Aids posted mid-single-digit growth with Maggi returning to volume growth and Maggi Masala-Ae-Magic consistently demonstrating good growth, Narayanan added. India continued to be the largest market worldwide for Maggi.

The Petcare business reported high double-digit growth, the highest ever, since its integration into the Nestlé India business, the company added. Out-of-Home (OOH) business delivered strong double-digit growth and is emerging as one of our fastest growing businesses. E-commerce, propelled by the rapid expansion of Quick Commerce, contributed to 8.5 per cent of domestic sales, in FY25 for Nestle India.

“Penetration, premiumization and innovation combined with disciplined resource allocation have been key in driving growth Since 2015 we have recalibrated and re-energised our product portfolio, by launching over 150 new products contributing 7 per cent of sales,” Narayanan said.

“We have strengthened our route to market through a comprehensive RUrban strategy. Our RUrban distribution touchpoints have increased to 27,730. We are present in approximately 208,500 villages. RUrban smart stores and HAAT activities in village markets have been enhanced and use and interventions with technology accelerated,” he added.

The company reiterated that it is investing about ₹6500 crore during 2020-25 period to develop new capabilities and capacity. “This not only demonstrates the strong demand for our products but also our commitment to manufacture in India and ‘Make in India’. The Odisha factory, our 10th citadel of growth, is being set up with an initial investment of approximately ₹900 crore, in its first phase, to manufacture products from our foods (Prepared Dishes and Cooking Aids) portfolio,” Narayanan added.

The company noted that commodity prices continued to be firm for coffee. “Cocoa prices have corrected but continue to be high. Prices continue to remain stable for edible oils. Milk prices have cyclically firmed up with the onset of summers,” it added.

Nestle India said it has expanded footprint to Maldives and Papua New Guinea, offering diverse range of confectionery SKUs. Meanwhile, Maggi noodles have been introduced in new markets in the Middle East and South Africa, while it saw a decline in North America.