Nestle India Q2 profit dips to Rs 899 crore, revenue up 1.3%

Nestle India Q2 earnings: Nestlé India reported a net profit of Rs 899 crore for the second quarter of FY25, showing a slight decline from Rs 908 crore in the same quarter last year. Revenue from operations for the quarter stood at Rs 5,104 crore, marking a 1.3 per cent increase compared to Rs 5,037 crore a year ago.

Suresh Narayanan, Chairman and Managing Director of Nestlé India, commented on the results, stating, "Despite a challenging external environment, including muted consumer demand and elevated commodity prices, particularly for coffee and cocoa, we have remained resilient in our pursuit of growth. This quarter, five of our top 12 brands achieved double-digit growth. However, some key brands faced pressure due to softer consumer demand, and we have robust action plans in place to address this. It is encouraging that over the last nine months, 65 per cent of our top 12 brands, including MAGGI noodles, showed positive volume growth."

Analysts have projected that Nestlé India would report a 6 per cent year-on-year increase in revenue, reaching Rs 5,336 crore, with net profit expected to fall to Rs 888 crore from Rs 908 crore in the same quarter of the previous fiscal year, due to high commodity inflation.

At 12:14 pm on October 17, shares of the FMCG firm were trading 2 per cent lower at Rs 2,412.90 per share.

In related news, Nestlé India’s Swiss parent company announced on October 18 a restructuring of its senior leadership and operating structure. It also revised its full-year sales outlook downward and reported weaker-than-expected nine-month organic sales growth, impacted by the failure to boost volumes amid continued price hikes.