Nestle India Q1 PAT rises 7% YoY to Rs 747 cr

The FMCG major's net profit rose 6.91% to Rs 746.6 crore on 3.34% increase in revenue from operations to Rs 4,813.95 crore in Q1 FY25 over Q1 FY24.

Total sales stood at Rs 4,792.97 crore in Q1 FY25, up 3.76% from Rs 4619.50 crore recorded in the same period a year ago.

During the quarter, domestic sales grew by 4.25% year on year (YoY) to Rs 4,608.5 crore, while export sales declined 7.18% YoY to Rs 184.47 crore.

Profit before tax (PBT) increased by 7.42% YoY to Rs 10,090.6 crore in the quarter ended 30 June 2024.

The company said that it continued to accelerate, with strong growth in quick commerce, driven by brands such as KITKAT, NESCAF MAGGI Masala-ae-Magic, MILKMAID and RTD. Growth was aided by new user acquisition and targeted digital communication across touchpoints, it added.

 

Suresh Narayanan, chairman and managing director of NestlIndia, said, I am pleased to share that despite external challenges such as lower consumption growth, concerns on continued food inflation and volatile commodity prices, we have delivered growth across our product groups. Almost a fourth of our growth has been mix and volume led, and we hope to strengthen this trend in the coming months.

I am happy to inform you that 5 of our top 12 brands grew double-digit. Our Beverages business stood out, with strong double-digit growth, despite a scorching summer across many parts of India. Strong consumer led activation on cold opportunity helped NESCAFCLASSIC post double-digit growth. In consonance, NESCAFSunrise, and NESCAFGOLD also delivered strong growth. The launch of NESCAFRoastery has further strengthened our premium coffee portfolio.

Prepared dishes and cooking aids too maintained its growth momentum, with innovations contributing to around 30% of the growth in the quarter. MAGGI Korean Noodles has been well received by our consumers and Masala-Ae-Magic saw double digit growth. KITKAT delivered double digit growth. Milk Products and Nutrition portfolio-maintained growth.

E-commerce sustained its upward trajectory, contributing to 7.5% of domestic sales and growing at double digit. The Out-of-Home business continued its growth momentum despite unprecedented headwinds of extreme weather conditions across India.

We continue our relentless focus on building distribution infrastructure as our touchpoints in RUrban geographies have been expanding consistently. During the period, we have successfully added over 800 new distribution touchpoints that includes cash distributors, re-distributors and wholesale hubs. Moreover, this quarter our village coverage has increased by 5,000 taking it to around 2,05,000 villages.

We continue to make strides in digitalization and technology. I am happy to announce that we have recently launched re-distributor management solution for sub-distributors in rural markets to leverage technology in their daily operations. This improves efficiency, through automated order processing, equips sub-distributors to make informed decisions about stocking and promotions. Sub-distributors are enabled to respond swiftly to retailer needs, creating a powerful network for rural distribution. This reinforces our partnership approach with trade to consistently find ways to enhance their capabilities.

All our factories today are leveraging digital solutions under the overarching theme of Digital Manufacturing Operations that provide intuitive experience for operators and supervisors, bringing in efficiency and speed at shop floor.

On its commodity outlook, the company said that the commodity prices are seeing unprecedented headwinds in coffee and cocoa with all time high prices and an ongoing price rally. Cereals and grains are going through a structural cost increase backed by MSP. There is relative stability in milk prices, packaging and edible oils.

Nestlis the world's largest food and beverage company. It manufactures internationally famous brand names such as Nescaf Maggi, Milkybar, Kit Kat, Bar-One, Milkmaid and Nestea.

The scrip declined 2.59% to Rs 2,478 on the BSE.

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