Nestle India Q1 results: Consolidated net profit surges 48% to ₹959 crore

Nestle India posted a consolidated net profit of ₹958.68 crore in the June quarter registering a surge of 48.26 per cent over ₹646.59 crore in the year ago period supported by strong volume growth. Consolidated revenue from operations increased 25.16 per cent year-on-year to ₹6,378.18 crore.

Manish Tiwary, Chairman and Managing Director, Nestlé India, said, “ We delivered a strong quarter with sales growth of 25.4 per cent led by volume growth. Sales stood at ₹6,363.3 crore, powered by continued consumer trust in our brands and a strong focus on execution. Exports delivered 35.6 per cent growth, despite ongoing geopolitical headwinds. “

Domestic sales growth was pegged at 25 per cent in the quarter under review.

“During the quarter, we further accelerated operational cost savings and continued to step up investments behind our brands with advertising spends increasing by over 40 per cent. All four product groups delivered strong double-digit growth, supported by high double-digit growth across channels,” he added

“General Trade continued to deliver strong double-digit growth across town classes, with rural markets leading the momentum. Rural distribution touchpoints expanded during the quarter, strengthening direct reach and improving the quality of coverage. This progress was underpinned by technology-led interventions, including DMS adoption at the sub-distributor level, which helped deepen retailer engagement and improve execution across rural markets,” Tiwary said.

Bolstered by premiumisation and e-commerce, the Confectionery product group recorded strong quarter of volume led double-digit growth as Kitkat continued to gain market share. Powdered and Liquid Beverages product group marked the 20th consecutive quarter of double-digit growth aided by increased coffee penetration, accelerated premiumization, and deeper category relevance across consumer segments, he added.

“Over the past year, Nespresso has expanded its presence across Delhi NCR, Mumbai and Bengaluru through a range of retail formats, including boutique, pavilion and pop-up,” Tiwary noted.

The company said prepared dishes and cooking aids portfolio recorded strong double-digit growth, driven by sharper engagement with urban consumers, continued expansion in rural markets and focused innovations. It added that milk products and nutrition portfolio also recorded strong, broad-based performance built on underlying volume growth across key brands and channels. T

The Pet Food business’s strong double-digit growth was supported by portfolio expansion, wider distribution and sharper consumer engagement. “We strengthened our presence in cat food with the launch of Felix Gravy Lover and Pro Plan Cat, addressing evolving pet parent needs across mainstream and premium offerings,” he added. 

Nestlé Professional also saw robust momentum and delivered double-digit volume-led growth as it focused on evolving its portfolio into a total solution provider for operator needs across all channels in the Out-of-Home space.

 “Even as we delivered strong business performance, we remained focused on building the capabilities, partnerships and value chains that strengthen our business for the long term. This is especially evident in our sustainability journey, particularly in the work we are doing to build a more resilient dairy value chain,” Tiwary added.

Nestle India said that the commodity markets remain mixed. While coffee is expected to remain well supplied, supported by higher production in Brazil and Vietnam, though short-term volatility may persist due to fund activity and weather-related harvest delays in Brazil. It added that cocoa and sugar remain under pressure, with cocoa impacted by erratic rainfall across key producing origins and sugar strengthening on lower-than-expected crop estimates, with uneven monsoon conditions linked to El Niño posing a risk to the next crop. “Edible oil prices remain stable at elevated levels. Wheat and milk are expected to remai...