During the January-March period of FY25, Nestle India's net profit decreased 6.5%, totalling Rs 873.46 crore. The profits decreased because commodity prices remained elevated, impacting the supply of coffee, cocoa, and milk solutions. Nescafe, KitKat, and other Nestle brands depend on these raw materials, which are essential production elements.
Despite the lower profit, revenue from operations rose 4.4% year-on-year to Rs 5,503.8 crore. The company's results reached Rs 5,503.8 crore, but fell short of market projections by Rs 2.8 crore. The business recorded a 2% rise in sales volume, yet urban market customer demand remained dormant because people faced rising living costs and modest salary growth.
During the quarter, Nestle's EBITDA metrics expanded to Rs 1,389 crore, a 2.9% increase compared to the same period last year. However, margins experienced pressure due to cost factors, as the Ebitda margin contracted to 25.2% from its previous value of 25.6%. According to the company, firm milk prices during summer caused performance issues.
The beverages and confectionery businesses at Nestle India achieved double-digit performance in the first quarter of 2021. Sales growth among the Nescafé and KitKat brands served as a guard for Nestlé India when other divisions reported struggles. The first-quarter results showed that three of the four product groups experienced a positive performance. The company experienced positive growth in its business segments, extending beyond milk and pet care products into out-of-home consumption.
The company expanded its delivery network by adding digital e-commerce packs to boost its online operations. The payout will be released on July 24 as a dividend of Rs 10 per share. Nestle pursues consumer engagement through offline business expansion and digital optimization procedures.
Nestle India's board announced key changes in its leadership team. Manish Tiwary, former country manager at Amazon India, will join as a key management personnel and will assume the role of managing director starting August 1, 2025. In governance updates, the company extended the tenure of PR Ramesh as an independent non-executive director until June 30, 2030.
Nestle maintains operational stability in the face of price fluctuations in its inputs and changing customer preferences. Nestle intends to maintain its performance by leveraging brand strength and expanding retail visibility amid ongoing inflation. The company displays a proportional ratio between its growth strategy and market and cost management.