Q2FY25: Nestle ups advertising and marketing investments

Nestle India has announced its financial results for the period ended September 30, 2024. The standalone total sales stood at Rs 5074.8 crore. The total sales growth was at 1.3% and the domestic sales growth stood at 1.2% increase. The conglomerate earned a net profit of Rs 986.4 crore.  

Suresh Narayanan, Chairman and Managing Director of Nestlé India, stated, “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. 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% of our top 12 brands including Maggi noodles showed positive volume growth. I am pleased to share that our Beverages business continued to do well and has posted high double-digit growth backed by strong performance across Nescafe Classic, Nescafe Sunrise, and Nescafe Gold, which can be attributed to category recruitment and premiumization of coffee. Milkmaid also reported high double-digit growth. Masala-Ae-Magic continued to grow at a high double-digit rate. The toddlers’ range also recorded high double-digit growth. Kitkat delivered high single digit growth. Amongst the newer categories, the petcare business demonstrated high single-digit growth. 

“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,” he said. 

Apart from product innovation, new channels have maintained momentum for Nestle. E-commerce delivered high double-digit growth, which was the highest in the last seven quarters contributing to 8.3% of domestic sales.

The Out-of-Home business continues to be one of their 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.