Nestle India Q1 FY25: Net Profit Up 7%, Revenue Grows 3.3% YoY

Nestle India reported a net profit of ₹746.6 crore in the first quarter of FY25, showing a 7% increase from ₹698.3 crore in the same period last year. The FMCG major’s revenue for Q1 FY25 rose by 3.3% to ₹4,814 crore, up from ₹4,658.5 crore YoY.

Growth Amidst Challenges

Despite external challenges such as lower consumption growth, continued food inflation, and volatile commodity prices, Nestle India delivered growth across its 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 of Nestlé India.

Operating Performance

At the operating level, the company reported earnings before interest, tax, depreciation, and amortization (EBITDA) growth of 4.3%, reaching ₹1,103 crore in the quarter ended June 2024 compared to ₹1,058.8 crore in the same period last year. The EBITDA margin increased by 20 basis points (bps) to 22.9% from 22.7% YoY.

Commodity Price Impact

Commodity prices are experiencing unprecedented headwinds in coffee and cocoa, with all-time high prices and ongoing rallies. Cereals and grains are seeing a structural cost increase backed by the Minimum Support Price (MSP). There is relative stability in the prices of milk, packaging, and edible oils.

Market Reaction

At 11:35 am, Nestle India shares were trading 1.60% lower at ₹2,503.10 apiece on the BSE.

Stay updated with the latest financial results and market trends with Nestle India’s Q1 FY25 performance.