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Informist, Thursday, Apr. 24, 2025

 

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--Nestle India Jan-Mar net profit INR 8.85 bln 
--Analysts saw Nestle India Jan-Mar net profit INR 8.70 bln 
--Nestle India Jan-Mar net profit INR 8.85 bln vs INR 9.34 bln year ago 
--Nestle India Jan-Mar revenue INR 55.04 bln vs INR 52.68 bln year ago 
--Nestle India to pay INR 10 per share final dividend 
--Nestle India FY25 net profit INR 33.15 bln vs INR 31.96 bln year ago 
--Nestle India FY25 revenue INR 202.02 bln vs INR 195.63 bln year ago 
--Nestle India FY25 profit from ops at 21.5% of sales 
--Nestle India Jan-Mar domestic sales INR 52.35 bln, up 4.2% on year 
--Nestle India: Coffee commodity prices remained firm in Jan-Mar 
--Nestle India: Cocoa prices fell in Jan-Mar but continue to be high 

 

By Avishek Rakshit

 

KOLKATA – Nestle India Ltd. has ended its streak of posting profit growth for 10 straight quarters, reporting a 5.2% on-year decline in its net profit for the March quarter at INR 8.9 billion. Despite beating the Street's estimates and posting its highest ever domestic sales, the stock fell on bourses as investors were disappointed with the performance. 

 

Nestle India's revenue for Jan-Mar rose 4.5% on year to INR 55.04 billion, primarily owing to double-digit growth in beverages and confectionery, with three of the four product groups delivering healthy growth. The company's product group, where various products are categorised under a single overhead, comprises beverages, confectionery, milk products and nutrition, and petcare businesses. 

 

The profit and revenue for Jan-Mar were a tad above the Street's estimate of INR 8.7 billion and INR 54.8 billion, respectively. However, the results failed to impress the Street, and Nestle India's shares fell 1% soon after the company detailed its results. Earlier in the day, the stock had opened strong, rising 3%, and was then up 1.6?fore the company announced its earnings. 

 

For the year ended Mar. 31, the Indian entity of the Swiss foods company reported a 3.7% on-year surge in its net profit to INR 33.1 billion, and revenue increased 3.3% to a little over INR 202 billion. However, Nestle India said that the figures for 2024-25 (Apr-Mar) are not comparable to the previous financial year, since the latter comprised a 15-month period, beginning Jan. 1, 2023, and ending on Mar. 31, 2024 as the company transitioned into a uniform financial year. 

In a statement, the company said its total sales and domestic sales for Jan-Mar increased 3.7% and 4.2%, respectively, and domestic sales growth was broad-based. In FY25, profit from operations comprised 21.5% of sales. 

 

"During the financial year ended 31st March 2025, powdered and liquid beverages were the largest growth contributor, with high double-digit growth. Nescafe strengthened its leadership position by gaining market share and bringing more than 5.1 million households into the coffee category," Suresh Narayanan, chairman and managing director at Nestle India, said in a statement. "Nescafe ready-to-drink cold coffee range, one of the fastest growing segments globally, expanded its new range to India this year."

 

The confectionery business grew at a high single-digit during the year ended March 2025, both in value and volume terms, driven by the KitKat brand. Incidentally, India is the second-largest market for the brand globally. Prepared dishes and cooking aids posted mid-single-digit growth with the Maggi instant noodles brand returning to volume growth and Maggi Masala-Ae-Magic – a tastemaker - consistently posting good growth. India continues to be the largest market worldwide for Maggi, Nestle India said.

 

New launches drove the growth in the company's milk products and nutrition portfolio. The company introduced new variants of the Cerelac brand of baby foods with no refined sugar. An extension of this brand, Ceregrow, which also has no refined sugar, was launched in the year under review. Nestle said the early responses to Ceregrow have been encouraging.

 

The petcare business reported high double-digit growth – the highest ever since its integration into the Nestle India business. 

 

The company's out-of-home business delivered strong double-digit growth and is emerging as one of its fastest-growing businesses. This segment forayed into the 'cocoa-based spreads' category with the launch of KitKat Professional Spread that can be used by chefs to improvise hot and cold desserts. The company's first boutique in India, Nespresso, which opened in New Delhi last month, has resonated exceptionally well with coffee connoisseurs, Nestle India said.

 

"Penetration, premiumisation, 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% of sales," Narayanan said. 

 

Nestle India said it is investing around INR 65 billion between 2020 and 2025 to develop new capabilities and capacity in the country. Its factory in Odisha, which it terms as its "10th citadel of growth", is being set up with an initial investment of around INR 9 billion in its first phase. It will manufacture food products in the prepared dishes and cooking aids categories.

 

Commodity prices, which are the procurement costs for Nestle, continue to be firm for coffee. Although cocoa prices corrected in the previous months, they remain high. Edible oil costs have remained stable, but milk costs have cyclically firmed up with the onset of summer, Nestle said. 

 

The company's board approved a final dividend of INR 10 per share. At 1325 IST, shares of Nestle India traded 0.8% down at INR 2,414.1 on the National Stock Exchange. End 
 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Tanima Banerjee

 

 

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