Business Economy


Q4: Nestle India profit declines 5 pc year-on-year

New Delhi, Apr 24 (UNI) FMCG major Nestle India Ltd on Thursday posted a net profit of Rs 885.4 crore for the January–March quarter (Q4FY25), down 5 per cent year-on-year.
While the drop in net profit was broadly in line with Dalal Street estimates, the company's revenue from operations rose 4.5 per cent to Rs 5,503.8 crore compared to Rs 5,268 crore in the same period last year.
The company also reported a 2 per cent growth in volumes for the quarter ended March 2025, signalling a nascent recovery in consumer demand despite facing margin pressures due to elevated input costs.
The volume-led growth comes as a positive indicator in an otherwise subdued macroeconomic environment, and underscores improving consumer sentiment, particularly across urban centres.
Chairman and Managing Director Suresh Narayanan said the rebound in volumes was led by core categories such as food and beverages, and attributed the performance to sustained investments in innovation, product premiumisation, and strengthened distribution networks.
"Volume growth is a strong indicator of consumer resilience and improved sentiment in a challenging macro environment," Narayanan said in a statement. "Our growth in the domestic market reflects the trust our consumers place in us, and our efforts to enhance reach and relevance."
Domestic sales rose 4.2 per cent to Rs 5,235 crore, marking a record high, while total sales increased by 3.7 per cent year-on-year. The company saw high double-digit growth in its Powdered and Liquid Beverages segment, driven by expanded penetration of NESCAFE.
The Confectionery business, led by Kit Kat, registered high single-digit growth, while the Prepared Dishes and Cooking Aids segment, including Maggi, saw mid-single-digit growth with a return to volume expansion.
Analysts had estimated a 4.4 per cent increase in revenue and a nearly 6 per cent decline in net profit, projecting the quarterly profit at Rs 870 crore against Rs 924 crore in Q4FY24. The reported figures largely met these expectations.
Despite growth in sales, Nestle continued to face pressure on margins from elevated raw material costs. The company cited high prices for commodities such as coffee and cocoa, though it noted that cocoa prices had begun to ease slightly. Milk prices firmed up seasonally with the onset of summer, while edible oil prices remained relatively stable.
"While commodity inflation remains a concern, we are hopeful that easing input costs and fiscal policy support will gradually restore profitability," Narayanan added.
The company declared a final dividend of Rs 10 per equity share for FY25. The record date has been set as July 4, and the dividend will be paid from July 24, subject to shareholder approval. This is in addition to interim dividends announced earlier, reaffirming Nestle's commitment to shareholder value. UNI BDN SSP
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