Nestle India Q4FY25 results: Net profit declines 5.2% to ₹885 crore

Fast-moving consumer goods (FMCG) major Nestlé India on Thursday reported a 5.2 per cent year-on-year (Y-o-Y) decline in net profit to ₹885 crore in the fourth quarter (Q4) of 2024-25 (FY25), amid rising volatility in commodities, in line with Bloomberg estimates.

 

Analysts at Bloomberg, who track standalone figures, had estimated a net profit of ₹885 crore for the quarter. The company had reported a net profit of ₹934 crore in the same period last year.

 

The board also approved the appointment of Manish Tiwary as key managerial personnel of the company, effective April 24, 2025.

 

Despite the profit decline, the maker of Maggi noodles and Nescafé coffee flagged volume growth in Q4. It reported a 4.5 per cent increase in net sales to ₹5,503.9 crore from ₹5,267.6 crore in the year-ago period. Its profit before interest, depreciation, and tax (PBIDT) stood at ₹1,397.4 crore, a 1.5 per cent rise from ₹1,376.8 crore in the year-ago period.

 

“This quarter, our domestic sales crossed the ₹5,235 crore mark, the highest ever in any quarter, supported by improving volume growth,” Suresh Narayanan, chairman and managing director, Nestlé India, said in an earnings release.

 

In Q4, the company saw double-digit growth in the beverage and confectionery categories. 

 

In a separate filing, Nestlé India said its board, in a meeting held on Thursday, recommended a final dividend of ₹10 per equity share of face value of ₹1 each for FY25.

 

For the full year, the Cerelac maker posted a 3.7 per cent increase in net profit to ₹3,314.5 crore from the same period last year, while Y-o-Y net sales rose 3.2 per cent to ₹20,201.5 crore.  ALSO READ: Adani Energy Solutions Q4 results: Net profit rises 79% to ₹647.15 cr

 

Powdered and liquid beverages emerged as the largest growth contributor in FY25, registering high double-digit growth. “Nescafé strengthened its leadership position by gaining market share and bringing more than 5.1 million households into the coffee category,” the company said in a release.

 

Confectionery grew at a high single-digit pace both in value and volume, driven by KitKat, for which India is the second-largest market globally. The prepared dishes and cooking aids segment also posted mid-single-digit growth, with Maggi returning to volume growth.

 

Meanwhile, the company’s out-of-home business emerged as one of the fastest-growing segments, delivering “strong double-digit growth”. It further noted that e-commerce, supported by the rapid expansion of quick commerce, contributed 8.5 per cent in FY25.

 

“Penetration, premiumisation, and innovation, combined with disciplined resource allocation, have been key in driving growth. Since 2015, we have launched over 150 new products, contributing 7 per cent of sales,” the release said.

 

The company also highlighted its strengthened presence in rural markets. “Our urban distribution touchpoints have increased to 27,730. We are present in about 208,500 villages,” the release added.

 

In its commodity outlook, the company said coffee prices continue to hold firm, while cocoa prices remain elevated despite a correction. “Prices continue to remain stable for edible oils. Milk prices have cyclically firmed up with the onset of summer,” it noted.

 

With inputs from PTI