Nestlé India (NESTLEIND) Q1 24/25 earnings summary

Executive summary

• Achieved total sales of INR 4,793.0 crore for Q1 FY25, with 3.8% overall sales growth and 4.2% domestic sales growth year-over-year.

• Net profit reached INR 746.6 crore, with earnings per share at INR 7.74 for the quarter.

• Five of the top twelve brands posted double-digit growth, with beverages and confectionery leading performance.

• E-commerce contributed 7.5% of domestic sales, growing at double digits; rural distribution expanded by 5,000 villages.

Financial highlights

• Profit from operations stood at 21.3% of sales.

• Cost of materials consumed as a percentage of sales decreased from 45.6% to 42.5% year-over-year.

• Interim dividend of INR 2.75 per share declared, totaling INR 2,651.4 million.

• Export sales expanded with new SKUs and first-time export of breakfast cereals to new markets.

Outlook and guidance

• Management remains cautious due to lower consumption growth, food inflation, and volatile commodity prices.

• Commodity prices for coffee and cocoa are at all-time highs; cereals and grains face structural cost increases.

• Continued focus on digitalization, rural expansion, and innovation to drive future growth.