Packaged food major Nestle India posted a consolidated net profit of ₹899.5 crore in Q2FY25, marginally lower than ₹908 crore in the corresponding quarter in the previous fiscal. Consolidated revenue from operations was up 1.3 per cent to ₹5,104 crore. Total sales grew 1.3 per cent to ₹5,074.8 crore while the company said that the domestic sales were up 1.2 per cent.

Suresh Narayanan, Chairman & Managing Director, Nestle India, said, “Despite a challenging external environment with muted consumer demand and high commodity prices especially for coffee and cocoa, we remained resilient in our pursuit to deliver growth. This quarter, 5 of our top 12 brands grew at double-digit. However, some key brands witnessed pressure due to softer consumer demand and we focus on them and have in place robust action plans. It is heartening to note that in the last 9 months, 65 per cent of our top 12 brands including Maggi noodles showed positive volume growth.”

The company said its beverage business posted “high double-digit” growth backed by strong performance across the Nescafe portfolio, backed by significant household penetration gains and premiumisation push with Nescafe Gold and Roastery. Milkmaid reported high double-digit growth backed by increased investments. In the prepared dishes and cooking aids segment, Masala-ae-Magic continued to grow at a high double-digit while the company focused on premiumisation through innovations including Maggi Chatpata Besan Noodles.

“We kept relentless focus on investing behind our core brands, wherein advertising and marketing investments increased this quarter. There was a strong focus on efficiencies in media buying, strengthening digital capabilities and reinforcing brand equity. Innovation is a core strength of Nestlé India, and we continue to invest in it as an engine for growth. Over the past eight years, we have recalibrated and rejuvenated our product portfolio by launching over 145 new products contributing to approximately 7 per cent of sales. Eight new projects are now in the pipeline,” Narayanan said.

In terms of channels, Nestle India said e-commerce delivered high double-digit growth of 38 per cent, the highest in the last seven quarters, and now contributes 8.3 per cent of domestic sales. This was primarily driven by quick commerce. Organised trade delivered growth driven by noodles, beverages and premiumisation.

“Our Out-of-Home business continues to be one of our fastest growing businesses with strong double-digit growth. We are a total solution provider with a comprehensive portfolio spanning hot and cold vending solutions, tin and spoon coffee applications and a wide range of food solutions in the savoury and dessert culinary space, to cater to every channel need,” Narayanan added.

The packaged food major added that commodity prices remain elevated especially for coffee and cocoa, with prices of cereals and edible oils also being accentuated with recent developments. There is relative stability in milk prices and packaging so far, it stated.

The Company’s board also approved the appointment of Manish Tiwary as Managing Director effective August 1, 2025, with Narayanan set to retire on July 31, 2025.

Related Topics