Nestle India Reports Profit Dip in Q4 by 6.50%, Despite Strong Sales Growth
As the fiscal fourth quarter earnings season continues its stride, Fast-Moving Consumer Goods (FMCG) major Nestle India has released its results, showing a dip in profitability for the quarter ended March 31, 2025, even as revenue from operations saw an increase. Following the results announcement, shares of Nestle India declined by 0.27% on the NSE, trading at ₹2,426.80.
Financial Performance: Profit Decline and Revenue Increase
Nestle India reported a profit of ₹873.46 crore for Q4 FY25, marking a 6.50 percent drop compared to ₹934.17 crore in the corresponding quarter of the previous fiscal year. Despite the decline in net profit, the company's revenue from operations showed growth, rising by 4.49 per cent to ₹5503.88 crore in Q4 FY25, up from ₹5267.59 crore in Q4 FY24. Total income for the quarter also increased to ₹5512.32 crore from ₹5294.34 crore year-on-year. For the full financial year FY25, Nestle India reported a net profit of ₹3,314.5 crore and total sales of ₹20,077.5 crore. Earnings Per Share (EPS) for FY25 stood at ₹34.38.
Sales Dynamics: Domestic Market Reaches Record High
A key highlight for the quarter was the robust performance in domestic sales. Total sales and domestic sales for Q4 increased by 3.7 percent and 4.2 percent respectively. The company noted that domestic sales growth was broad-based. Significantly, domestic sales crossed the ₹5,235 crore mark, which is the highest ever in any quarter, surpassing the level seen in January-March 2024.
Operational Highlights: Category Performance and Commodity Headwinds
Nestlé India posted strong performance across key categories in Q4 FY25, with double-digit growth in Beverages and Confectionery. For the full year, Powdered and Liquid Beverages led growth with high double-digit gains, while Confectionery, driven by KITKAT, delivered high single-digit growth in both value and volume. MAGGI, under Prepared Dishes and Cooking Aids, returned to volume growth with mid-single-digit overall gains. The Petcare segment recorded its highest-ever growth since integration, posting high double-digit growth.
On the cost front, the company noted firm commodity prices for coffee, persistently high cocoa costs despite recent corrections, and stable edible oil prices. Milk prices have firmed cyclically with the summer season.
Strategic Investments and Leadership Transition
Nestle India continues its investment programme, committing approximately ₹6,500 crore between 2020 and 2025 to develop new capabilities and capacity. This investment underscores the strong demand for its products and its commitment to 'Make in India' initiatives. The new Odisha factory, representing an initial investment of around ₹900 crore in its first phase, is being set up to manufacture products from the Foods portfolio.
In a significant leadership development, the board has recommended the appointment of Manish Tiwary as Managing Director for a five-year term effective from August 1, 2025. He has also been appointed as Key Managerial Personnel (Designate) from April 24, 2025.
Dividend Announcement
The board recommended a final dividend of ₹10 per equity share of face value ₹1 each for the financial year 2024-25. This dividend is recommended on the company's entire issued, subscribed, and paid-up share capital. The record date for this dividend is April 24, 2025.
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