NEW DELHI: Nestle India reported an 11.7% decline in net profit to Rs 659 crore in the first quarter of the current financial year despite a 6% growth in revenue. The first quarter revenue grew by 5.9% to Rs 5,074 crore compared to Rs 4,814 crore in the year-ago period.
This decline in profit, despite revenue growth, is likely attributed to the elevated consumption prices across the commodity portfolio, higher operations costs as a result of expansion in manufacturing and higher finance costs. However, impact of higher raw material prices was partly offset by stabilising prices for edible oil and cocoa, a declining trend in coffee and stabilising to modest increase in pricing of milk.
Cost of materials consumed as a percentage of sales has increased from 42.5% to 45.0% for the three months ended 30th June 2025. However, EBIDTA margin of the company clocked a strong 21.7%.
According to the company, the Powdered and Liquid Beverages category sustained its position as one of the largest growth drivers with another robust performance this quarter registering strong double-digit growth. This performance builds on a strong foundation following high double-digit growth in the corresponding quarter, said the company in a statement. The company witnessed the prepared dishes and cooking aids category swinging back to volume growth, recording double-digit growth for Maggi noodles.
In the milk products and nutrition category, Milkmaid delivered single-digit growth. The Confectionery business growth was driven by rural acceleration, premiumization, and increased in-home penetration, supported by quick commerce.
E-commerce maintained its growth momentum, contributing to 12.5% of domestic sales, driven by Quick Commerce and new launches.
Meanwhile, the company announced the appointment of Manish Tiwary as the chairman of the Board, effective 1st August 2025. Accordingly, Tiwary will assume his office as Chairman and Managing Director of the Company, effective 1 August 2025. Suresh Narayanan, the current CMD, will relinquish his office upon his retirement on 31st July 2025.