On January 31, 2025, Nestlé India Ltd announced its financial results for the third quarter of the fiscal year 2024-25 (Q3 FY25), showcasing a solid performance with a net profit of ₹688 crore. This figure represents a 5% increase compared to ₹655.6 crore in the same quarter last year, reflecting the company’s resilience in a challenging market environment. Additionally, revenue for the quarter rose by 4% to ₹4,779.7 crore, slightly exceeding analyst expectations.
It was moreover able to gain a 3% volume growth. Opolarising to the domestic sales, the company generated ₹4,566 crore, which is about 95% of the entire revenue, and had a 3.27% YoY growth rate in the sales, and the export had a 2.17% YoY growth rate.
The operating revenue of the company for the quarter was ₹4,779 crore, showing an improvement compared with ₹4,600 crore in the same quarter of the previous year.
On the operating front, EBITDA was at ₹1,103 crore against ₹1,095 crore in Q3FY24, and margins were at 23%.
Finally, on the bottom line, consolidated net profit increased by 5% to ₹ 688 crore; it was ₹ 655 crore for the same period the previous year. Despite the increased costs in the raw materials used in production, lower cost has not dominated the FMCG companies after elevating the issue to the consumers by mostly maintaining the prices in a bid to maintain margins.
It shows that essential commodities like soap, tea, coffee, noodles, biscuits, and chocolates, among many others, have been facing constant price increases.
In the future, scenarios that the firm has anticipated will be high, and over the coming months, the cost of commodities such as coffee, cocoa, cereals, and grains will remain high. Thus, the cost of edible oil has remained fairly constant and anticipates that milk and packaging costs are likely to hold their ground as well.
In this regard, Suresh Narayanan, the Chairman and Managing Director of Nestlé India also commented by saying, “This quarter, 3 out of 4 product groups posted good growth driven by price and volume. The overline brands remain on track, and this gives a good picture in a difficult climate.”
The beverage powdered and liquid segment remains our growth driver this quarter and grew at more than double digits rates. In his comments, he stated, “Beverage’s retail reached a new landmark of ₹2,000 crore business in the last year.”
Dividend Declaration
In light of its solid financial performance, Nestlé India’s board declared a second interim dividend of ₹14.25 per equity share for FY25. The record date for this dividend is set for February 7, 2025.
This decision reflects the company’s commitment to returning value to shareholders while maintaining a focus on growth.