Nestlé India Q3 net profit rises 6% YoY to Rs 696 crore; declares Rs 14.25 interim dividend

Nestlé India reported a 6.2 per cent year-on-year (YoY) summation successful standalone nett profit for Q3 FY25, reaching Rs 696 crore, aligning with expert expectations. The company's gross stood astatine Rs 4,780 crore, reflecting a 3.9 per cent YoY growth, portion home income saw a 3.3 per cent rise during the quarter. Despite dependable fiscal performance, Nestlé flagged cost pressures successful cardinal commodities, including java and cocoa. Following the net release, Nestlé India's banal surged 6.5 per cent to Rs 2,361 connected the NSE.

Revenue and nett maturation successful enactment with estimates

The company's profit earlier exceptional items besides grew 6 per cent YoY, indicating resilience contempt macroeconomic challenges. Revenue growth, however, remained mean astatine 3.9 per cent YoY, arsenic inflationary pressures and commodity terms volatility weighed connected user demand.

The FMCG large declared a second interim dividend of Rs 14.25 per share, bringing the full interim dividend for FY25 truthful acold to Rs 17 per share.

Commodity outgo pressures persist

Nestlé India highlighted persistent outgo pressures connected cardinal earthy materials specified arsenic coffee, cocoa, cereals, and grains. However, the institution reported stabilization successful edible lipid prices and steady costs for beverage and packaging materials, offering immoderate alleviation to margins.

Business conception performance

• E-commerce: Growth accelerated, driven by quick commerce, user acquisition, festival activations, and premiumization. Brands specified arsenic KitKat, NESCAFÉ, and MAGGI led this expansion.
• Organized Trade: Retail concern continued its affirmative momentum, supported by MAGGI noodles, beverages, and premium merchandise offerings.
• Out-of-Home (OOH) Business: This conception witnessed strong growth, backed by portfolio transformation, geographical expansion, and expanding lawsuit acquisitions. Nestlé expanded its Retail One Kiosks to 940+ locations crossed colleges, hospitals, and tourer spots.
• Exports: The institution recorded robust maturation successful cardinal planetary markets, particularly successful nutrition, instant tea, and confectionery. Nestlé expanded its MAGGI Masala-Ae-Magic, NESCAFÉ SUNRISE, and NESTLÉ MUNCH brands to caller markets successful the United States and the UAE.

Stock show and outlook

Nestlé India's banal reacted positively to the net report, jumping 6.5 per cent to Rs 2,361 connected the NSE. Analysts stay cautiously optimistic astir the company's maturation trajectory, emphasizing cost absorption strategies and premiumization efforts arsenic cardinal drivers for aboriginal performance.

Despite moderate gross growth, Nestlé India's resilient nett margins, strategical enlargement successful high-growth segments, and unchangeable dividend payouts proceed to marque it a beardown subordinate successful the FMCG space. Investors volition ticker intimately for further pricing actions and cost-control measures successful the coming quarters.