Nestle India’s Q1 FY25 results show that net profit and revenue growth fell short of Moneycontrol analyst expectations. Shares declined 1% following the quarterly results.
Nestle India’s net profit for the first quarter of FY25 increased 6.9 percent year on year to Rs 746.6 crore from Rs 698.3 crore in the same quarter last year.
The FMCG major’s revenue from operations in the April-June quarter increased by 3.3 percent to Rs 4,814 crore, up from Rs 4,659 crore the previous year.
A better product mix and increased sales volume contributed to the FMCG major’s April-June earnings gain. However, the outcomes were below expectations.
A Moneycontrol poll of eight brokerages projected Nestle India’s Q1 net profit at Rs 798 crore and revenue at Rs 5,060 crore.
Despite external constraints such as reduced consumption growth, concerns about ongoing food inflation, and variable commodity prices, we have generated growth across our product groups,” stated Suresh Narayanan, Nestle India’s Chairman and Managing Director.
“Almost a fourth of our growth has been mix and volume led, and we hope to strengthen this trend in the coming months,” said the CEO.
Nestle strengthened its distribution infrastructure as part of its RUrban expansion strategy throughout the quarter.
The company established more than 800 new distribution touchpoints, including cash distributors, re-distributors, and wholesale hubs.
Nestle India also increased its coverage to 2.05 lakh villages, adding 5,000 new ones, the company announced.
Earlier, on July 8, the Nestle India Board of Directors declared an interim dividend of Rs 2.75 per share for the current fiscal year 2024-25, totaling Rs 2,65.14 crore.
This dividend will be paid on August 6, along with the final dividend of Rs 8.5 for the fiscal year ending March 31, 2024.