The company posted a consolidated net profit of Rs 688.01 crore in the third quarter of the current fiscal (Q3FY25)
Driven by growth in the powdered and liquid beverages business, Nestle India, a fast-moving consumer goods (FMCG) major has registered a five per cent year-on-year (YoY) uptick in its net profit during the third quarter of the current fiscal (Q3FY25). The company posted a consolidated net profit of Rs 688.01 crore in Q3FY25, up from Rs 655.61 crore in Q3FY24.
The company’s financial results revealed that the revenue from operations increased by 3.9 per cent on a YoY basis to Rs 4,779.73 crore, compared to Rs 4,600.42 crore in Q3FY24. However, the company stated that it was a quarter that was marked with food inflation, moderation in urban consumption, with a gradual recovery in rural consumption.
“Beverages retail achieved a significant milestone by surpassing Rs 2,000 crore business in the last twelve months, spearheaded by Nescafé Classic, Nescafé Sunrise and Nescafé Gold. This quarter three out of four 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,” stated Suresh Narayanan, Chairman and Managing Director of Nestlé India.
The company posted consolidated total sales of Rs 4,762.1 crore for the recently concluded quarter, marking a total sales growth of 3.9 per cent. The total expenses of the company also marked an uptick from Rs 3,636.94 crore in Q3FY24 to Rs 3,861.91 crore in Q3FY25.
The company stated that its manufacturing capacity will witness a significant jump with the commissioning of the third Confectionery unit in Sanand factory to manufacture KitKat. This expansion is aimed towards fulfilling its ambition of Rs 5,800 crore capital expenditure between 2020 and 2025.
“Confectionery recorded high single-digit growth with KitKat delivering double-digit growth and building on new product launches. 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,” added Narayanan.
He added that the company’s petcare business witnessed the highest growth this quarter since its integration into the Nestlé India business in 2022. Out-of-Home business reported strong double-digit growth with a significant acceleration in the food and beverage solutions portfolio. Ecommerce continued its path of acceleration posting high double-digit growth and contributing 9.1 per cent to domestic sales, as per the company.
The company stated that new products introduced since 2015 now contribute to approximately seven per cent of sales. As far as the commodity outlook is concerned, it added that commodity prices continue to be firm for coffee, cocoa and cereals and grains. Prices of edible oil have stabilised and prices continue to remain stable for milk and packaging.
The company’s board of directors also declared a second interim dividend of Rs 14.25 per share for the financial year 2024-25, payable from 27 February 2025. This follows the first interim dividend of Rs 2.75 per share, distributed on 6 August 2024.
