Nestle India Q3 Results: Net profit rises 5% YoY to ₹688 crore; interim dividend declared

Nestle Q3FY25 Earnings: Nestle India released its December quarter performance today, January 31, reporting numbers in line with estimates as its key brands delivered healthy growth. 

The company achieved a volume growth of 3%. Its revenue from domestic sales, which accounts for 95% of the company's total revenue, stood at ₹4,566 crore, reflecting a 3.27% YoY increase, while export revenue improved by 2.17% YoY. Total revenue from operations during the quarter was ₹4,779 crore, marking a 4% growth compared to ₹4,600 crore in the same quarter last year.

On the operating front, EBITDA came in at ₹1,103 crore, compared to ₹1,095 crore in Q3FY24, while margins stood at 23%.

On the bottom line, consolidated net profit improved by 5% to ₹688 crore, compared to ₹655 crore in the same period last year. Amid a continued rise in raw material costs, FMCG companies have passed on the pressure to consumers, with price increases largely retained to restore margins. Categories such as soap, tea, coffee, noodles, biscuits, and chocolates have witnessed steady price hikes.

Looking ahead, the company expects commodity prices for coffee, cocoa, and cereals and grains to remain elevated. Prices of edible oil have stabilized, and it expects milk and packaging prices to remain stable.

Commenting on the results, Suresh Narayanan, Chairman and Managing Director of Nestlé India stated, “This quarter 3 out of 4 product groups delivered healthy growth led by a combination of pricing and volume. Key brands continue to perform, and this augurs well in a challenging environment."

"Our powdered and liquid beverages business was the largest growth contributor this quarter, with high double-digit growth. Beverage's retail achieved a significant milestone by surpassing ₹2,000 crore business in the last twelve months," he further added.

The stock also reacted positively to the numbers, rising 6% to ₹2,345 per share as of 12:30 p.m.

Nestle announces 2nd interim dividend

The company declared a second interim dividend for the current financial year 2024-25 of ₹14.25 per equity share (face value ₹1 per equity share), amounting to ₹1,373.92 million. This will be paid on and from February 27, 2025.

This is in addition to the first interim dividend of ₹2.75 per equity share, which was paid on August 6, 2024.

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