Nestlé India Q3 net profit rises 6% YoY to Rs 696 crore; declares Rs 14.25 interim dividend
Nestlé India Q3 net profit rises 6% YoY to Rs 696 crore, meets estimates; cost pressures persist on coffee and cocoa. Declares Rs 14.25 interim dividend; stock jumps 6.5% on NSE.
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Nestlé India reported a 6.2 per cent year-on-year (YoY) increase in standalone net profit for Q3 FY25, reaching Rs 696 crore, aligning with analyst expectations. The company's revenue stood at Rs 4,780 crore, reflecting a 3.9 per cent YoY growth, while domestic sales saw a 3.3 per cent rise during the quarter. Despite steady financial performance, Nestlé flagged cost pressures in key commodities, including coffee and cocoa. Following the earnings release, Nestlé India's stock surged 6.5 per cent to Rs 2,361 on the NSE.
Revenue and profit growth in line with estimates
The company's profit before exceptional items also grew 6 per cent YoY, indicating resilience despite macroeconomic challenges. Revenue growth, however, remained moderate at 3.9 per cent YoY, as inflationary pressures and commodity price volatility weighed on consumer demand.
The FMCG major declared a second interim dividend of Rs 14.25 per share, bringing the total interim dividend for FY25 so far to Rs 17 per share.
Commodity cost pressures persist
Nestlé India highlighted persistent cost pressures on key raw materials such as coffee, cocoa, cereals, and grains. However, the company reported stabilization in edible oil prices and steady costs for milk and packaging materials, offering some relief to margins.
Business segment performance
- E-commerce: Growth accelerated, driven by quick commerce, consumer acquisition, festival activations, and premiumization. Brands such as KitKat, NESCAFÉ, and MAGGI led this expansion.
- Organized Trade: Retail business continued its positive momentum, supported by MAGGI noodles, beverages, and premium product offerings.
- Out-of-Home (OOH) Business: This segment witnessed strong growth, backed by portfolio transformation, geographical expansion, and increasing customer acquisitions. Nestlé expanded its Retail One Kiosks to 940+ locations across colleges, hospitals, and tourist spots.
- Exports: The company recorded robust growth in key international markets, especially in nutrition, instant tea, and confectionery. Nestlé expanded its MAGGI Masala-Ae-Magic, NESCAFÉ SUNRISE, and NESTLÉ MUNCH brands to new markets in the United States and the UAE.
Stock performance and outlook
Nestlé India's stock reacted positively to the earnings report, jumping 6.5 per cent to Rs 2,361 on the NSE. Analysts remain cautiously optimistic about the company's growth trajectory, emphasizing cost management strategies and premiumization efforts as key drivers for future performance.
Despite moderate revenue growth, Nestlé India's resilient profit margins, strategic expansion in high-growth segments, and stable dividend payouts continue to make it a strong player in the FMCG space. Investors will watch closely for further pricing actions and cost-control measures in the coming quarters.
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