On October 17, Nestlé India announced the appointment of Manish Tiwary as Managing Director, effective August 1, 2025.
For Q2 FY25, Nestlé India reported a net profit of ₹899 crore, a slight decrease from ₹908 crore in the same quarter last year. Revenue from operations for Q2 FY25 reached ₹5,104 crore, up 1.3% from ₹5,037 crore a year earlier.
Suresh Narayanan, Chairman and Managing Director of Nestlé India, commented on the results: “Despite facing a challenging external environment characterized by subdued consumer demand and high commodity prices, particularly for coffee and cocoa, we have remained resilient in our growth efforts. This quarter, five of our top twelve brands achieved double-digit growth. However, some key brands experienced pressure due to weaker consumer demand, and we have implemented robust action plans to address these challenges. Notably, over the past nine months, 65% of our top twelve brands, including MAGGI noodles, have shown positive volume growth.”
The company had anticipated a 6% year-on-year increase in revenue to ₹5,336 crore compared to ₹5,036.8 crore reported in the same quarter last year, while net profit was projected to decline to ₹888 crore from ₹908 crore due to high commodity inflation.
Commodity prices remain high, particularly for coffee and cocoa, with prices for cereals and edible oils also rising due to recent developments. However, there has been relative stability in milk prices and packaging costs thus far.
In a related update, Nestlé India’s Swiss parent company announced on October 17 that it is restructuring its senior leadership and operating framework, lowering its full-year sales outlook, and reporting disappointing nine-month organic sales growth, largely due to difficulties in raising volumes amid ongoing price hikes.
The Swiss company anticipates organic sales growth of approximately 2% in 2024 and an underlying trading operating profit (UTOP) margin of around 17% for the year.
The beverages division showed strong double-digit growth, driven by robust performances from NESCAFÉ CLASSIC, NESCAFÉ SUNRISE, and NESCAFÉ GOLD, thanks to category recruitment and the premiumization of coffee.
E-commerce also recorded high double-digit growth, accounting for 8.3% of domestic sales, supported by premiumization efforts, new user acquisition, festive participation, and targeted digital marketing. The company reported that e-commerce growth accelerated by nearly 38%, primarily fueled by quick commerce and brands like KITKAT, NESCAFÉ, MAGGI, and MILKMAID.
The Out-of-Home segment is also expanding with strong double-digit growth, and exports continue to grow as the company introduces new SKUs across various categories to markets in Canada, the Middle East, the Maldives, and Papua New Guinea, as stated in the regulatory filing.
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