Nestlé India posts second straight quarter of profit growth, clocks double-digit volume growth in Q2

Nestle India, the country's leading fast moving consumer goods company (FMCG), on Thursday, October 15, posted growth in net profit for a second consecutive quarter in September quarter supported by double-digit volume growth.

Nestle India said that its net profit in the second quarter of current financial year came in at ₹1,027 crore as against ₹753 crore in the same period last year.

Its total revenue from operations advanced 20% to ₹6,788 crore from ₹5,643 crore a year earlier.

The company reported strong operational performance as its earnings before interest, taxes, depreciation, and amortization (EBITDA) also known as operating profit jumped 31% to ₹1,615 crore and its EBITDA margin expanded by 200 basis points to 23.8%.

“I am pleased to share that the quarter saw a continuation of strong and broad-based growth across all product groups, with total sales reaching ₹6,782.2 crore, with a growth of 20.5%, that was driven by robust, double-digit volume growth," said Manish Tiwary, Chairman and Managing Director, Nestle India.

Nestke said that e-commerce continued its strong trajectory, driven by sustained shopper engagement, portfolio breadth, and focused channel-specific execution. General trade delivered robust, double-digit growth across town classes, led by strong momentum in rural markets.

“Continued expansion of rural distribution touchpoints enhanced our direct reach and strengthened market coverage,” Nestle said.

Nutrition category continued to deliver sequentially strengthening performance. Toddlers-specific products delivered strong growth with market share gains.

Nestle’s flagship product MAGGI continuing to focus on building brand love and providing a wider range of variety to consumers with MAGGI Double Masala, Spicy range and scaling-up of the new MAGGI veg atta with taste of MAGGI masala, the company noted.

Nestle warned that going ahead coffee and wheat are expected to remain range-bound, while sugar and edible oils have stabilized at elevated levels. Cocoa remains volatile due to weather-driven crop concerns in key origins. Milk prices have strengthened seasonally but should ease as flush supplies arrive, the company added.

Nestle said that its organized trade delivered strong growth across key categories, supported by improved instore execution, effective consumer activations, enhanced shelf visibility, and continued expansion of the store network.

As of 1:17 pm, Nestle shares traded 5.5% lower at ₹1,308, underperforming the NIFTY50 index which was up nearly 2%.