Synopsis
Nestle India reported a 5% increase in consolidated net profit to Rs 688 crore for Q3 FY 2024-25, boosted by strong sales of its beverages. The company also declared a second interim dividend of Rs 14.25 per share, set for payout on February 27.Key Takeaways
- Nestle India's profit rose by 5% to Rs 688 crore in Q3 FY 2024-25.
- Second interim dividend declared at Rs 14.25 per share.
- Total revenue increased to Rs 4,779 crore, a 4% growth.
- Volume growth of 3%, with domestic sales comprising 95% of revenue.
- Strong performance from major brands amid rising costs.
New Delhi, Jan 31 (NationPress) Nestle India revealed a 5 percent rise in its consolidated net profit, reaching Rs 688 crore in the third quarter of the financial year 2024-25, compared to Rs 655 crore during the same timeframe last fiscal year.
This growth in profit was driven by increased sales of powdered and liquid beverages, notably the popular Nescafe coffee.
Nestle India has declared a second interim dividend of Rs 14.25 per equity share for the financial year 2024-25, totaling Rs 1,373.92 million.
The dividend is set to be disbursed starting February 27 and follows the earlier interim dividend of Rs 2.75 per share, which was distributed on August 6, 2024.
The company's overall revenue from operations for the quarter was Rs 4,779 crore, reflecting a 4 percent increase from Rs 4,600 crore in the same quarter last year (Q3 FY24).
Nestle India experienced a 3 percent growth in volume, with domestic sales comprising 95 percent of total revenue, as reported in its stock exchange filing.
Domestic sales reached Rs 4,566 crore, marking a 3.27 percent year-on-year growth. Export revenue also saw a rise of 2.17 percent.
The company's EBITDA in Q3 was Rs 1,103 crore, slightly above the Rs 1,095 crore recorded in the previous quarter, maintaining a margin of 23 percent.
Nestle India Chairman and Managing Director Suresh Narayanan stated, "This quarter, three out of four product categories exhibited robust growth driven by a combination of pricing and volume."
He further mentioned that major brands continue to thrive, which is encouraging in a challenging market.
Nestle has successfully transferred some of the increased costs to consumers by raising prices on products such as soap, tea, coffee, noodles, biscuits, and chocolates, which has helped maintain margins.
The company expects that the costs associated with milk and packaging will stabilize.
The market responded positively to these results, with Nestle India’s stock closing at Rs 2,345 per share after a 6 percent increase.
