Nestlé India (NESTLEIND) Q3 24/25 earnings summary

Executive summary

• Total sales for Q3 FY24-25 reached INR 4,762.1 million, up 3.9% year-over-year, with domestic sales up 3.3%.

• Three out of four product groups delivered healthy growth, led by beverages and confectionery.

• Net profit for the quarter was INR 696.1 million, with EPS at INR 7.22.

• E-commerce and Out-of-Home channels posted strong double-digit growth, contributing 9.1% to domestic sales.

• The Board declared a second interim dividend of INR 14.25 per share, totaling INR 13,739.2 million.

Financial highlights

• Profit from operations stood at 20.3% of sales for Q3 FY24-25.

• Cost of materials consumed as a percentage of sales increased from 41.6% to 43.8% year-over-year.

• Export sales registered strong growth, especially in nutrition, instant tea, and confectionery.

• Exceptional items for the nine months included gains from the sale of the Nutraceutical and NBS businesses.

• Standalone net profit for Q3 was INR 696.1 million; consolidated net profit was INR 714.4 million.

Outlook and guidance

• Management expects continued growth in beverages, confectionery, and petcare, with further expansion in e-commerce and Out-of-Home channels.

• Commodity prices for coffee, cocoa, cereals, and grains remain firm; edible oil prices have stabilized.

• Rural consumption is gradually recovering, while urban consumption is moderating.