Nestle India Q2 profit drops 1% to ₹899 cr

Net profit of Nestle India fell marginally by 0.9% year-on-year to ₹899 crore for the quarter ended September 30, 2024, dragged down by elevated commodity prices, especially for coffee and cocoa. Nestle India reported a net profit of ₹908 crore in Q2 FY24.

Revenue from operations rose 1.33% to ₹5,104 crore for the second quarter compared with ₹5,037 crore in the corresponding quarter a year ago.

“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,” says Suresh Narayanan, chairman and managing director of Nestlé India.

In the last 9 months, 65% of our top 12 brands including Maggi noodles showed positive volume growth, says Narayanan.

“Over the past eight years, we have recalibrated and rejuvenated our product portfolio by launching over 145 new products contributing to approximately 7% of sales. Eight new projects are now in the pipeline,” says the Nestle India chief.

Beverages business posted high double-digit growth backed by strong performance, aided by premiumisation of coffee. Milkmaid also reported high double-digit growth. Masala-Ae-Magic continued to grow at a high double-digit. 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.

“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,” says Narayanan.

The company introduced ‘CERELAC’ variants with no refined sugar. “This was initiated three years ago and has culminated this year with the introduction of new CERELAC variants with no refined sugar. 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 end of November 2024 and the balance will be introduced in the coming weeks,” says Narayanan.

E-commerce delivered high double-digit growth, which was the highest in the last seven quarters contributing to 8.3% of domestic sales.

To ensure a smooth transition due to Suresh Narayanan’s retirement as chairman and managing director of the company on July 31, 2025, the Board of Directors has decided that Manish Tiwary will commence his role at Nestlé India as Managing Director (Designate) starting February 1, 2025, taking on full responsibilities as managing director from August 1, 2025.