Nestle India Reports 6.5% Decline in Q4 Profit to Rs 873 Crore Despite Increase in Sales
Nestle India Ltd has reported a 6.5% decline in its consolidated net profit for the March quarter of FY25, amounting to Rs 873.46 crore. This downturn comes amid challenges in the fast-moving consumer goods (FMCG) sector, including food inflation and a slowdown in urban consumption. Despite the profit drop, the company saw an increase in revenue from product sales, which rose to Rs 5,447.64 crore compared to Rs 5,254.43 crore in the same period last year.
Financial Performance Overview
In its latest regulatory filing, Nestle India disclosed that total sales and domestic sales grew by 3.7% and 4.2%, respectively, during the quarter. Domestic sales reached an all-time high of Rs 5,235 crore, surpassing figures from the January-March 2024 quarter. However, the company faced challenges in its export segment, which saw an 8.65% decline to Rs 212.66 crore, primarily due to commodity pressures in the coffee market. Overall, Nestle India’s total expenses for the quarter stood at Rs 4,307.76 crore, while revenue from operations increased by 4.48% year-on-year to Rs 5,503.88 crore.
Chairman and Managing Director Suresh Narayanan highlighted the positive growth in the Beverages and Confectionery segments, noting that three out of four product groups experienced healthy growth. For the entire financial year FY25, Nestle India’s consolidated net profit reached Rs 3,207.59 crore, with total revenue from operations amounting to Rs 20,201.56 crore, up from Rs 19,563.37 crore the previous year.
Market Dynamics and Product Performance
Nestle India attributed its growth to significant contributions from its Powdered and Liquid Beverages segment, which experienced high double-digit growth. The NESCAFE brand notably strengthened its market position, bringing over 5.1 million households into the coffee category. The company also enhanced its presence in e-commerce channels, improving product availability and implementing targeted media strategies to reach consumers effectively.
In the organized trade sector, Nestle India achieved broad-based growth across various categories, driven by store expansions and strong in-store activations. The Out of Home (OOH) segment also saw accelerated growth, supported by increased penetration in the market. On the export front, Nestle India expanded its reach to new markets, including the Maldives and Papua New Guinea, while introducing Maggi noodles in the Middle East and South Africa. However, the company faced challenges in North America, where it reported a decline in sales.
Commodity Challenges and Future Outlook
Despite the growth in certain segments, Nestle India acknowledged ongoing commodity headwinds, particularly in green coffee, which impacted its export performance. The company noted that while cocoa prices have stabilized, they remain high, and edible oil prices are stable. Milk prices have also firmed up cyclically with the arrival of summer.
In a separate announcement, Nestle India’s board recommended a final dividend of Rs 10 per equity share for the financial year 2024-25. Additionally, the board approved the appointment of Manish Tiwary as Key Managerial Personnel, effective April 24, 2025. Tiwary is set to take over as Managing Director on August 1, 2025, following the retirement of Suresh Narayanan in July.
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