Nestle India Ltd. on Thursday reported a 6.5% year-on-year fall in consolidated net profit to ₹8.73 billion for the January–March quarter of 2024-25, missing market estimates. The company had posted a net profit of ₹9.34 billion in the same quarter last year.

Revenue from operations rose 4.5% to ₹55.04 billion, up from ₹52.68 billion a year ago. Total income for the quarter stood at ₹55.12 billion, while expenditure came in at ₹43.08 billion.

The fast moving consumer goods major posted a 3.7% increase in total sales and a 4.2% growth in domestic sales. “Domestic sales crossed ₹52.35 billion, the highest ever, surpassing that of the January–March 2024 quarter,” the company said in a statement.

Chairman and Managing Director Suresh Narayanan said: “I am pleased to report that this quarter we witnessed double-digit growth in Beverages and Confectionery, with 3 out of 4 product groups delivering healthy growth. Our domestic sales crossed ₹52.35 billion, the highest ever in any quarter, supported by improving volume growth.”

Segment-wise Performance

• Powdered and Liquid Beverages was the largest contributor to growth, led by high double-digit expansion. Nescafé gained market share and added over 5.1 million households to the coffee category.

• Confectionery saw high single-digit growth in both value and volume, driven by KitKat.

• Prepared Dishes and Cooking Aids grew in mid-single digits. Maggi returned to volume growth, with Maggi Masala-ae-Magic maintaining strong momentum. India continued to be the largest market globally for Maggi, the company noted.
  
  

Commodity outlook

Nestle said prices remain firm for coffee, while cocoa prices have corrected slightly but are still high. Prices for edible oils remain stable, while milk prices have risen cyclically with the onset of summer.

Dividend

The board recommended a final dividend of ₹10 per share for 2024-25 on the entire share capital of 964.16 million equity shares of face value Re 1 each.