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Nestle India jumps as Q3 PAT rises 6% YoY to Rs 696 crore; declares dividend of Rs 14.25/sh

31-Jan-25 13:04 Hrs IST

Total sales stood at Rs 4,762.13 crore in the December 2024 quarter, up 3.89% from Rs 4,583.63 crore recorded in the same period a year ago.

During Q2 FY25, domestic sales grew by 3.26% YoY to Rs 4,566.05 crore, while export sales jumped 21.16% YoY to Rs 196.08 crore.

Profit before tax grew by 4.04% YoY to Rs 922.26 crore in the quarter ended 31 December 2024.

On nine-month basis, the company's net profit increased 7.39% to Rs 2,429.09 crore on 2.81% rise in revenue from operations to Rs 14,697.68 crore in 9M FY25 over 9M FY24.

The firm said that E-commerce growth was aided by quick commerce, consumer acquisition, festival activation and premiumization. KITKAT, NESCAF', MAGGI further fuelled growth. Retail business continued its growth journey led by MAGGI noodles, beverages and overall premiumization.

Out of Home (OOH) segment is one of the fastest growing businesses driven by continued portfolio transformation and premiumization, robust customer acquisition and geographical expansion beyond metros and mega cities. Expanded presence with Nestl' Retail One Kiosks to 940+ across colleges, hospitals, and tourist hotspots, it added.

Suresh Narayanan, chairman and managing director, Nestle India, commented on the results, 'Key brands continue to perform and this augurs well in a challenging environment. Our powdered and liquid beverages business was the largest growth contributor this quarter, with high double-digit growth. Beverages retail achieved a significant milestone by surpassing Rs 2,000 crore business in the last twelve months, spearheaded by NESCAF' CLASSIC, NESCAF' SUNRISE, and NESCAF' GOLD. With this stellar performance, NESCAF' strengthened its leadership position by gaining market share and bringing 3.7 million households into the coffee category.

The distribution reach of Nestl' India has also been enhanced in the last twelve months amongst Food & Beverage companies, wherein we have had one of the most impressive expansion of outlets by almost 5% according to Nielsen report. The RUrban strategy continues to enhance our footprint. This is an essential element of the 'penetration led growth' strategy and has resulted in maximum contribution to the expansion of our distribution reach.

Our manufacturing capacity will witness a significant jump with the commissioning of the third Confectionery unit in Sanand factory to manufacture KITKAT towards fulfilling our ambition of INR 5,800 crore capital expenditure between 2020-2025.

I firmly believe in business as a force for good. As part of our commitment, we launched Project Vriddhi five years ago, in Nuh district. Today, we celebrate the transformation of 14 villages through improved agricultural practices by engaging 1000 farmers, restoring eight ponds with 25 million litres of storage potential, imparting digital literacy and enhancing skills for women and children. This initiative has positively impacted the lives of 18,000 individuals and has witnessed a multiplier effect on several development indicators.'

Meanwhile, the company's board approved second interim dividend of Rs 14.25 per equity share for the financial year 2024-25, which will be paid on and from 27 February 2025. The record date is fixed as 7 February 2025.

Nestl' is the world's largest food and beverage company. It manufactures internationally famous brand names such as Nescaf', Maggi, Milkybar, Kit Kat, Bar-One, Milkmaid and Nestea.