Nestlé India's Q4 profit declines 6.5% to ₹873.4 crore on elevated raw material costs, revenue up 4%

FMCG major Nestlé India' s profit declined 6.5% to ₹873.4 crore in the January–March quarter of FY2025 from ₹934.17 crore in the same period a year ago, primarily due to high raw material costs. The company’s Q4 revenue grew 4% year-on-year to ₹5,503.8 crore, driven by double-digit growth in beverages and confectionery.

"Total and domestic sales for the quarter increased by 3.7% and 4.2%, respectively. Domestic sales growth was broad-based. Domestic sales crossed ₹5,235 crore, the highest ever, surpassing that of the January–March 2024 quarter," the company said in an exchange filing today.

Nestle India noted that commodity prices remain firm for coffee, edible oils, and milk. "Cocoa prices have corrected but continue to be high. Prices remain stable for edible oils. Milk prices have cyclically firmed up with the onset of summer."

Suresh Narayanan, Chairman and MD of Nestlé India, said the company witnessed double-digit growth in beverages and confectionery, with three out of four product groups delivering healthy growth. India is the second-largest market for Nestlé globally. In line with its omnichannel approach, the company saw continued growth, propelled by the expansion of quick commerce, which contributed to 8.5% of domestic sales in FY25, he added.

Among the various verticals Nestle India operates in, powdered and liquid beverages were the largest growth contributors throughout the year, with high double-digit growth. Its NESCAFÉ brand gained market share and brought more than 5.1 million households into the coffee category. The company's Petcare business also reported high double-digit growth.

Nestle also plans to invest around ₹6,500 crore between 2020 and 2025 to develop new capabilities and capacity. "This not only demonstrates the strong demand for our products but also our commitment to manufacturing in India and 'Make in India'. The Odisha factory is being set up with an initial investment of approximately ₹900 crore in its first phase to manufacture products from our prepared dishes and cooking aids portfolio," said Narayanan.

He added that with the spectre of climate change rapidly intensifying, the company is increasing its reliance on renewable energy, implementing sustainable logistics practices, and minimising waste. "We continue to promote the circular economy and have transitioned to sustainable packaging. Our supply chain resilience is being strengthened. Through regenerative agricultural practices, greenhouse gas emissions are being reduced."

For FY25, total sales stood at ₹20,077.5 crore, while profit from operations stood at 21.5% of sales at ₹3,314.5 crore. Earnings per share for FY25 were recorded at ₹34.38. The company's board has recommended a final dividend of ₹10 per share of face value ₹1 each for FY25, while earnings per share fell to ₹9.06 in Q4, compared to ₹9.69 in the year-ago period.