Nestlé India Q3 Profit Up 6% YoY, Declares ₹14.25 Dividend

31 Jan 2025 , 09:52 PM

Nestlé India reported a net profit of ₹696 crore for Q3 FY25, marking a 6% increase from ₹655.6 crore in the same period last year. The company recorded an exceptional loss of ₹107 crore in the base quarter, which impacted the previous year’s comparison.

Revenue grew 4% YoY to ₹4,779.7 crore, slightly below market expectations but reflecting strong domestic demand and pricing adjustments. Domestic volume growth stood at 3%, surpassing the expected 1%-2% growth, indicating healthy demand despite inflationary pressures.

EBITDA for the quarter was ₹1,103 crore, maintaining stability from ₹1,113 crore last year, reflecting cost control efforts despite margin pressures. EBITDA margin contracted by 120 basis points to 23% from 24.2% last year, primarily due to higher coffee and cocoa prices, but remained above market expectations of 22.7%.

Nestlé India declared a second interim dividend of ₹14.25 per share, reinforcing strong shareholder returns. The record date for the dividend is February 7, 2025.

Powdered and liquid beverages posted the highest growth, with key brands such as NESCAFÉ CLASSIC, NESCAFÉ SUNRISE, and NESCAFÉ GOLD driving strong sales.

Beverage retail crossed ₹2,000 crore in sales over the past 12 months, reflecting consistent consumer demand and premiumization trends. The Out-of-Home business reported strong double-digit growth, led by expansion in food & beverage solutions.

E-commerce sales posted high double-digit growth, contributing 9.1% to total domestic revenue, driven by changing consumer buying patterns. New product launches since 2015 now contribute approximately 7% of total sales, indicating successful innovation and product diversification.

Market conditions were challenging, with food inflation and slowing urban demand affecting overall industry growth. However, rural consumption showed signs of recovery.

Chairman & MD Suresh Narayanan emphasized that 3 out of 4 product categories saw strong growth, driven by pricing strategies and volume expansion in key markets.

Investments in digital infrastructure, AI, and supply chain improvements are helping Nestlé India navigate market challenges and optimize efficiencies. Despite inflationary pressures and demand fluctuations, Nestlé India’s strong brand presence, strategic pricing, and innovation pipeline position it well for continued growth in the coming quarters.