Nestle India's net profit for Q2 FY25 on October 17 stood at Rs 899 crore, falling marginally from Rs 908 crore for the corresponding quarter of the previous year.
Revenue from operations for Q2FY25 was Rs 5,104 crore as compared to Rs 5,037 crore a year ago, a rise of 1.3 percent.
Commenting on the results, Suresh Narayanan, Chairman and Managing Director of Nestlé India, said, “Despite a challenging external environment with muted consumer demand and high commodity prices especially for coffee and cocoa, we remained resilient in our pursuit to deliver growth. This quarter, 5 of our top 12 brands grew at double-digit. However, some key brands witnessed pressure due to softer consumer demand and we focus on them and have in place robust action plans. It is heartening to note that in the last 9 months, 65% of our top 12 brands including MAGGI noodles showed positive volume growth."
According to a Moneycontrol poll of seven brokerages, the Maggi noodles maker was expected to report a 6 percent year-on-year jump in revenue at Rs 5,336 crore compared to Rs 5,036.8 crore reported in the same quarter last year. Net profit was expected to fall to Rs 888 crore in the June quarter from Rs 908 crore from the corresponding quarter during the previous fiscal year amid high commodity inflation.
At 12:10 pm on October 17, the FMCG firm's shares were trading 1.8% lower at Rs 2,418.1 apiece.
Commodity prices remain elevated specially for coffee and cocoa, with prices of cereals and
edible oils also being accentuated with recent developments. There is relative stability in milk
prices and packaging so far
Meanwhile, Nestle India's Swiss parent announced on October 17 that it is revamping senior leadership and its operating structure, cut its full-year sales outlook and reported worse-than-expected nine-month organic sales growth, after failing to raise volumes amid continued price hikes.
The Swiss company said it expects 2024 organic sales growth to be around 2% and an underlying trading operating profit (UTOP) margin of about 17% for the year.
Beverages business posted high double-digit growth backed by strong performance across NESCAFÉ CLASSIC, NESCAFÉ SUNRISE, and NESCAFÉ GOLD, which can be attributed to category recruitment and premiumization of coffee.
E-commerce delivered high double-digit growth, contributing to 8.3% of domestic sales supported by premiumisation, new user acquisition, festive participation, and targeted digital communications. The company in regulatory filing stated that e-commerce continued accelerated growth by almost 38%, primarily driven by quick commerce and fueled by brands such as KITKAT, NESCAFÉ, MAGGI and MILKMAID.
Out-of-Home business is growing with strong double-digit growth.
Exports continued to expand its footprint by introducing new SKUs across categories to Canada, Middle East, Maldives and Papua New Guinea, the company said in the regulatory filing.
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