FMCG major Nestle India Ltd on Thursday released its fiscal second quarter earnings wherein it recorded a profit decline of 0.9 per cent at Rs 899.49 crore, however surpassing estimates. The company had recorded profit during the corresponding quarter of FY24 at Rs 908.08 crore. It posted revenue from operations at Rs 5104.00 crore, posting a growth of 1.3 per cent as against Rs 5036.82 crore during the same period of previous financial year. According to a CNBC TV18 poll, Nestle India was expected to record Q2 profit at Rs 877 crore and revenue for the quarter in review was estimated at Rs 5357 crore.
On a standalone basis, Nestle India had posted Q2 profit at Rs 986.36 crore and EBITDA stood at Rs 1168 crore.
Suresh Narayanan, Chairman and Managing Director of Nestlé India, said, “Despite a challenging external environment with muted consumer demand and high commodity prices especially for coffee and cocoa, we remained resilient in our pursuit to deliver growth. This quarter, 5 of our top 12 brands grew at double-digit. However, some key brands witnessed pressure due to softer consumer demand and we focus on them and have in place robust action plans. It is heartening to note that in the last 9 months, 65% of our top 12 brands including MAGGI noodles showed positive volume growth.”
Nestle India’s Q2 performance across categories
Nestle India’s beverages business posted double-digit growth backed by strong performance across Nescafé Classic, Nescafé Sunrise, And Nescafé Gold, which can be attributed to category recruitment and premiumization of coffee. Milkmaid also reported high double-digit growth. Masala-Ae-Magic continued to grow at a high double-digit rate. The company said that the toddlers’ range also recorded high double-digit growth. Kitkat delivered high single digit growth. Amongst the newer categories, the petcare business demonstrated high single-digit growth, it added.
“We kept relentless focus on investing behind our core brands, wherein advertising and marketing investments increased this quarter. There was a strong focus on efficiencies in media buying, strengthening digital capabilities and reinforcing brand equity,” said Suresh Narayanan, while adding that the company continued to invest in innovation as an engine for growth
“I am happy to inform you that over the past eight years, we have recalibrated and rejuvenated our product portfolio by launching over 145 new products contributing to approximately 7 per cent of sales. Eight new projects are now in the pipeline,” he said.
Further, the company also announced that it has introduced ‘cerelac’ variants with no refined sugar, which was initiated three years ago. “The expanded CERELAC range in India will now consist of 21 variants, of which 14 variants will have no refined sugar. Of these 14 variants, 7 will be available by the end of November 2024 and the balance will be introduced in the coming weeks,” Suresh Narayanan added.
Nestle India’s Q2 performance across distribution channels
In terms of distribution/retail channels, the company said that e-commerce continued accelerated growth by almost 38 per cent, primarily driven by Quick Commerce and fueled by brands such as Kitkat, Nescafé, Maggi And Milkmaid. Growth was supported by premiumisation, new user acquisition, festive participation and targeted digital communications, it said.
Organized Trade delivered growth spurred by noodles, beverages and overall premiumization.
Out of Home (OOH) showcased robust growth propelled by portfolio transformation, premiumization, new customer acquisition and driving reach beyond metros.
Export, meanwhile, continued to expand its footprint by introducing new SKUs across categories to Canada, Middle East, Maldives and Papua New Guinea.
Leadership appointment
Nestle India also announced that the board of directors have approved the appointment of Manish Tiwary as Managing Director of Nestlé India Limited and he will succeed Suresh Narayanan, who will retire on 31st July 2025. The appointment will be effective from August 1, 2025, for a term of five consecutive years.
“To ensure a smooth transition due to Mr Suresh Narayanan’s retirement as Chairman and Managing Director of the Company on 31st July 2025, the Board of Directors has decided that Mr Manish Tiwary will commence his role at Nestlé India as Managing Director (Designate) starting 1st February 2025, taking on full responsibilities as Managing Director w.e.f. 1st August 2025,” it said in a regulatory filing.
From: financialexpress
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