Nestlé India Q3 net profit up 5% YoY to Rs 688 crore

Nestle has recorded 3.89% YoY growth in its revenue from operations, which stands at Rs 4779.7 crore for Q3 FY25 against Rs 4600.4 crore the same quarter of the previous year.

The domestic sales for the conglomerate stood at Rs 4566 crore, marking a 3.21% YoY increase from Rs 4421.7 crore in Q3 of FY23. Similarly, the export sales for the quarter touched Rs 196 crore, a 21.1% higher from Rs 161.8 crore in the similar quarter of preceding fiscal.

Nestlé India's total net profit for the quarter ending in December 2024 increased by 5% YoY to Rs 688 crore from Rs 655.61 crore during the same period the previous year.

Chairman and Managing Director Suresh Narayanan highlighted the company’s robust performance in the quarter ended December 2024, with three out of four product groups registering healthy growth driven by a combination of pricing and volume.

“Our powdered and liquid beverages business emerged as the largest growth contributor this quarter, witnessing high double-digit growth. Beverages retail crossed a significant milestone, surpassing Rs 2,000 crore in business over the last twelve months, led by NESCAFÉ Classic, NESCAFÉ Sunrise, and NESCAFÉ Gold,” Narayanan stated. He further noted that NESCAFÉ strengthened its leadership position by gaining market share and bringing 3.7 million households into the coffee category.

On distribution expansion, Narayanan emphasized that Nestlé India has significantly increased its retail reach over the past year. “Amongst Food & Beverage companies, we have achieved one of the most impressive expansions in outlets, growing by almost 5%, as per the Nielsen report. Our Urban strategy continues to drive this growth by enhancing distribution reach.”

Additionally, Nestlé India is set to boost its manufacturing capacity with the commissioning of a third confectionery unit at the Sanand factory to produce Kitkat. This development is in line with the company’s ambitious capital expenditure plan of Rs 5,800 crore between 2020-2025.

He further shared, the confectionery segment recorded high single-digit growth, with KITKAT delivering double-digit growth, further strengthened by new product launches.

Prepared Dishes and Cooking Aids posted high single-digit growth, led by Maggi noodles, which returned to credible volume growth. Masala-ae-Magic also demonstrated strong and consistent growth performance.

In the nutrition business, products catering to toddlers’ milk and specific nutritional needs continued to perform well, contributing to the company’s overall growth.

Nestlé India’s Petcare business recorded its highest growth since its integration into the company in 2022, as per Narayanan.