FILE PHOTO: A worker arranges packets of Nestle's Maggi noodles on a shelf inside a supermarket in Mumbai.
Credit: Reuters Photo
New Delhi: FMCG major Nestle India Ltd on Thursday reported a 13.4 per cent decline in consolidated net profit to Rs 646.59 crore for the June 2025 quarter, mainly impacted by high commodity prices.
The company had posted a net profit of Rs 746.6 crore a year ago, according to a regulatory filing by Nestle India, which owns popular brands such as Maggi, NESCAFÉ and KitKat.
Its revenue from the sale of products increased 5.86 per cent to Rs 5,073.96 crore in the April-June quarter. It was Rs 4,792.97 crore in the corresponding period of the last financial year.
"The quarter was impacted by elevated consumption prices across the commodity portfolio. In addition, we witnessed higher operations costs as a result of significant expansion in manufacturing in the last seven to eight months," Nestle India Chairman and Managing Director Suresh Narayanan said.
Borrowings from commercial banks to fund temporary operational cash-flow requirements resulted in higher finance costs in the quarter.
"However, we have noticed stabilising prices for edible oil and cocoa, a declining trend in coffee and a stabilising to modest increase in pricing of milk," Narayanan said.
The total expenses of Nestle India rose 9.25 per cent to Rs 4,199.73 crore.
Domestic sales climbed 5.45 per cent to Rs 4,860.01 crore in the first quarter against Rs 4,608.50 crore in the corresponding period of the previous fiscal.
According to Narayanan, Nestle India has delivered a "balanced growth" in three out of its four product group categories.
"Prepared Dishes and Cooking Aids, Powdered and Liquid Beverages and Confectionery have bounced back to volume-led growth. Seven out of twelve top brands grew at double-digit (in terms of volume)," he said.
Moreover, Nestle India has maintained its growth momentum on e-commerce and hyper-delivery platforms. In the June quarter, e-commerce contributed to 12.5 per cent of domestic sales, driven by quick commerce and new launches, said Narayanan, the outgoing Chairman of Nestle India.
Nestlé India's Out-of-Home business consistently grew at double-digit rates, making it the fastest-growing business across the Beverages and Foods portfolio.
In the Prepared Dishes and Cooking Aids segment, the Maggi portfolio registered strong growth, with consumption trends showing positive signs of an uptick.
While in the Milk Products and Nutrition segment, Milkmaid delivered single-digit growth. Similarly, in Confectionery, growth was driven mainly by KitKat’s rural acceleration, premiumisation, and increased in-home penetration, supported by quick commerce.
In Powdered and Liquid Beverages, Nestlé's NESCAFÉ Classic, NESCAFÉ Sunrise, and NESCAFÉ GOLD continued strong performances.
Nestle Pet Food business Purina witnessed a strong performance, primarily driven by the cat portfolio.
Its exports surged 16 per cent to Rs 213.95 crore.
On the commodity outlook, Nestle India said coffee prices are expected to remain range-bound at current lower levels, as the upcoming Vietnam crop appears to be normal.
"Cocoa and Edible Oil prices have stabilised and remain range-bound. Milk prices are anticipated to decrease with the onset of a favourable monsoon and flush season," it said.
Shares of Nestle India were trading at Rs 2,327.45 apiece, down 5.11 per cent on the BSE.