Nestle India reported a net profit of ₹746.6 crore in the first quarter of FY25, recording a growth of 7% from ₹698.3 crore in the year ago period.
The FMCG major’s revenue from operations in Q1FY25 increased 3.3% to ₹4,814 crore from ₹4,658.5 crore, YoY.
“Despite external challenges such as lower consumption growth, concerns on continued food inflation and volatile commodity prices, we have delivered growth across our product groups. Almost a fourth of our growth has been mix and volume led, and we hope to strengthen this trend in the coming months,” said Suresh Narayanan, Chairman and Managing Director, Nestlé India.
He informed that 5 of the company’s top 12 brands grew double-digit, while its Beverages business reported strong double-digit growth.
At the operating level, the Maggi-maker reported earnings before interest, tax, depreciation and amortization (EBITDA) growth of 4.3% at ₹1,103 crore in the quarter ended June 2024 as compared to ₹1,058.8 crore in the year-ago period. EBITDA margin increased by 20 basis points (bps) to 22.9% from 22.7%, YoY.
“Commodity prices are seeing unprecedented headwinds in coffee and cocoa with all time high prices and an ongoing price rally. Cereals and grains are going through a structural cost increase backed by MSP. There is relative stability in milk prices, packaging and edible oils,” Nestle India said.
E-commerce sustained its upward trajectory, contributing to 7.5% of domestic sales and growing at double digit. The Out-of-Home business continued its growth momentum despite unprecedented headwinds of extreme weather conditions across India.
During the quarter, Nestle India continued focus on its distribution infrastructure as a part of its RUrban strategy and added over 800 new distribution touchpoints that includes cash distributors, re-distributors and wholesale hubs. Moreover, its village coverage increased by 5,000 taking it to 2,05,000 villages.
Nestle India Board of Directors on July 8 had declared an interim dividend of ₹2.75 per share for the current financial year 2024-25, amounting to ₹2,65.14 crore. The company said that this dividend will be paid on August 6 along with the final dividend of ₹8.5 for the financial year ended March 31, 2024.
At 11:35 am, Nestle India shares were trading 1.60% lower at ₹2,503.10 apiece on the BSE.
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