Nestle India Q2 Results: Net profit slips 1% YoY, company flags muted consumer demand; shares fall 3%

This shows that the bottomline saw a decline of 0.94% on a year-on-year (YoY) basis.

Revenue from operations came in at ₹5,104 crore, up 1.3% against ₹5,036.8 crore recorded in the September 2023 quarter. 

On a standalone basis, Nestle India reported a net profit of ₹986.36 crore, up 8.6% against ₹908.08 crore logged in the year-ago period. 

Shares of Nestle India post the result announcement ended over 3.30% lower at ₹2379.70 apiece on the BSE. 

Commenting on the results, Suresh Narayanan, Chairman and Managing Director of Nestlé India, stated, “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.

The chairman added, "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."

The company said that its Beverages business continued to do well and has posted high double-digit growth backed by strong performance across NESCAFÉ CLASSIC, NESCAFÉ SUNRISE, and NESCAFÉ GOLD, which can be attributed to category recruitment and premiumisation of coffee.

Commodity Outlook

Commodity prices remain elevated specially for coffee and cocoa, with prices of cereals and edible oils also being accentuated with recent developments. There is relative stability in milk prices and packaging so far, Nestle India said.