October 17, 2024
New Delhi, India
Nestle India Q2 Results:
- Net Profit: ₹986.4 crore, an increase of 8.6% from ₹908 crore in Q2 FY24.
- Revenue from Operations: ₹5,104 crore, up by 1.3% from ₹5,037 crore a year ago.
- EBITDA: ₹1,168 crore, a 4.7% decline YoY.
- EBITDA Margin: Down by 130 basis points (bps) to 22.9% from 24.2% YoY.
Key Business Insights:
- Challenges: Nestle India faced a muted consumer demand and elevated commodity prices, especially for coffee and cocoa.
- Growth Drivers: Five of its top 12 brands saw double-digit growth, including MAGGI noodles. The beverages business, driven by NESCAFÉ, posted strong double-digit growth.
- Segment Growth:
- Beverages: Strong growth across NESCAFÉ CLASSIC, NESCAFÉ SUNRISE, and NESCAFÉ GOLD.
- MILKMAID and Masala-Ae-Magic: High double-digit growth.
- Petcare business: Recorded high single-digit growth.
Management Remarks:
Suresh Narayanan, Chairman and Managing Director of Nestlé India, acknowledged the challenging external environment but emphasized the company’s resilience in driving growth despite pressure on certain brands. The company remains focused on key brands facing softer consumer demand and has put in place action plans to address this.
Outlook:
- Commodity Prices: Prices of coffee, cocoa, and cereals remain elevated, though there is stability in milk and packaging costs.
Nestle India’s continued growth amid headwinds demonstrates its ability to navigate tough market conditions while delivering strong performances in key product categories.
Nestle India Shares were trading 2.9% lower at 2390.25 by 1:48 PM IST Today.
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