Nestle India recorded a consolidated net profit of Rs 899 crore for the quarter ended September 30, 2024, a little decrease from Rs 908 crore in the same period the previous year. This is an almost 1% reduction over the previous year.
However, the net profit after tax exceeded the Street expectation of Rs 852 crore. The income from operations in the reported quarter was Rs 5,104 crore, up 1.3% from Rs 5,037 crore in the same quarter last year.
On a standalone basis, PAT for the reporting quarter was Rs 986 crore, an 8.5% rise over Rs 908 crore in the same period last year. There was an unusual loss of Rs 183 crore, up from Rs 106 crore reported by the FMCG major in the same quarter the previous year.
Suresh Narayanan, the business's Chairman and Managing Director, commented on the results, saying that the company remained resilient in its quest of expansion amid a challenging external environment marked by low consumer demand and high commodity costs, particularly for coffee and cocoa.
"This quarter, 5 of our top 12 brands rose by double digits. However, some significant brands saw pressure as a result of reduced consumer demand, and we are focusing on them with comprehensive action plans in place.
It's encouraging to see that 65% of our top 12 brands, including MAGGI noodles, had positive volume growth in the last nine months," Narayanan said.
According to Nestle's exchange statement, profit from operations accounted for 21% of the company's standalone sales, which totaled Rs 5,075 crore. Total sales increased by 1.3%, with domestic sales up 1.2%.
The e-commerce segment experienced approximately 38% growth, principally driven by Quick Commerce and supported by brands such as Nescafé, Maggi, and Milkmaid. Premiumization, new user acquisition, holiday engagement, and targeted digital messaging all helped to drive this development, according to the filing.
The organized commerce saw growth, fueled by noodles, beverages, and overall premiumization.
Meanwhile, exports expanded their reach by releasing new SKUs (stock-keeping units) across categories in Canada, the Middle East, the Maldives, and Papua New Guinea.
Regarding the commodity outlook, Nestlé indicated that prices continue high, particularly for coffee and cocoa, with recent events influencing grain and edible oil prices. Milk prices and packaging have remained rather stable, according to the company thus far.
