Nestle India Q2 FY25: Profit Declines Amidst Revenue Growth, Ongoing Market Challenges
Narayanan noted that 65% of their top twelve brands, including MAGGI noodles, grew over the last nine months.
A recent poll predicted a 6% increase in revenue and a profit of Rs 888 crore for this quarter.
Nestle India earned a net profit of Rs 899 crore in the second quarter of FY25. This is Rs 9 crore less than last year’s profit of Rs 908 crore. The company’s revenue grew by 1.3% to Rs 5,104 crore, up from Rs 5,037 crore last year.
Suresh Narayanan, the Chairman, said they faced challenges like low consumer demand and high coffee and cocoa prices. Still, they worked hard to grow.
Five of their top twelve brands did well. However, some brands struggled due to weaker demand.
Narayanan noted that 65% of their top twelve brands, including MAGGI noodles, grew over the last nine months.
A recent poll predicted a 6% increase in revenue and a profit of Rs 888 crore for this quarter. However, the actual results were lower than expected.
At 12:10 PM on October 17, Nestle India’s shares fell by 1.8% to Rs 2,418.1 each.
Prices for coffee and cocoa are still high, and prices for cereals and edible oils have gone up too. However, milk prices and packaging costs have stayed stable.
In Switzerland, Nestle’s parent company announced changes in leadership and operations.
They lowered their sales outlook for the year and reported lower sales growth over the past nine months.
They are having trouble increasing volumes while prices keep rising. They expect around 2% sales growth for 2024 and a profit margin of about 17% for the year.
