Nestle India reported a standalone net profit of ₹986.4 crore for the second quarter of FY25, registering a rise of 8.6% from ₹908 crore in the same quarter last fiscal.
The company’s revenue from operations in Q2FY25 increased marginally by 1.3% to ₹5,104 crore from ₹5,037 crore a year ago.
At the operational level, earnings before interest, tax, depreciation and amortization (EBITDA) during the quarter ended September 2024 decreased 4.7% to ₹1,168 crore from ₹1,225 crore, while EBITDA margin weakened by 130 basis points (bps) to 22.9% from 24.2%, YoY.
However, Nestle India’s consolidated net profit in Q2FY25 declined to ₹899 crore from ₹908 crore in the corresponding quarter of the previous year.
“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,” said Suresh Narayanan, Chairman and Managing Director of Nestlé India.
He added that in the last 9 months, 65% of the company’s top 12 brands including MAGGI noodles showed positive volume growth.
Nestle India’s beverages business posted 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.
MILKMAID also reported high double-digit growth. Masala-Ae-Magic continued to grow at a high double-digit. The toddlers’ range recorded high double-digit growth. KITKAT delivered high single digit growth. Amongst the newer categories, the petcare business demonstrated high single-digit growth, Narayanan added.
The company’s Out-of-Home business saw strong double-digit growth.
“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,” Nestle India said in a release.
At 2:30 pm, Nestle India shares were trading 2.93% lower at ₹2,390.00 apiece on the BSE.
