Nestle India reported a net profit of INR 899.5 crore in Q2FY25, slightly lower than INR 908 crore in the same quarter last year. Revenue from operations increased by 1.3% to ₹5,104 crore. Total sales also rose 1.3% to INR 5,074.8 crore, with domestic sales up 1.2%.
Nestle India reports double-digit growth in beverage business
According to businessline, Suresh Narayanan, Chairman & Managing Director, Nestle India, said, “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.”
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Further, he mentioned, “ However, some key brands witnessed pressure due to softer consumer demand and we focus on them and have in place robust action plans. It is heartening to note that in the last 9 months, 65 percent of our top 12 brands including Maggi noodles showed positive volume growth.”
Meanwhile, the company reported “high double-digit” growth in its beverage business, thanks to the strong performance of the Nescafe range, increased household reach, and premium products like Nescafe Gold and Roastery. Milkmaid also saw high double-digit growth due to more investments. In the prepared dishes and cooking aids category, Masala-ae-Magic grew significantly, while the company introduced premium products like Maggi Chatpata Besan Noodles.
Nestle India reveals 38% e-commerce growth, now 8.3% of domestic sales
Adding further, Suresh Narayanan explained, “We kept relentless focus on investing behind our core brands, wherein advertising and marketing investments increased this quarter. There was a strong focus on efficiencies in media buying, strengthening digital capabilities and reinforcing brand equity. Innovation is a core strength of Nestlé India, and we continue to invest in it as an engine for growth.
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“Over the past eight years, we have recalibrated and rejuvenated our product portfolio by launching over 145 new products contributing to approximately 7 percent of sales. Eight new projects are now in the pipeline,” he further mentioned.
Highest in the last seven quarters, Nestle India reported that e-commerce grew by 38%, and now makes up 8.3% of domestic sales, mainly due to quick commerce. Organised trade also saw growth, driven by noodles, beverages, and premium products.
“Our Out-of-Home business continues to be one of our fastest growing businesses with strong double-digit growth. We are a total solution provider with a comprehensive portfolio spanning hot and cold vending solutions, tin and spoon coffee applications and a wide range of food solutions in the savoury and dessert culinary space, to cater to every channel need,” Suresh said.
Mentioning rising commodity prices, Nestle India reported coffee and cocoa prices are still high. Prices for cereals and edible oils have also risen due to recent events. However, milk prices and packaging costs have remained relatively stable.
