Nestlé India has reported a modest rise in operational revenue, achieving ₹5,503.8 crore, which is a 4.4% increase compared to the previous year, although it slightly fell short of the anticipated ₹5,512 crore. The company’s ongoing commitment to maintaining strong operational performance is evident, with EBITDA climbing 2.9% year-on-year to ₹1,389 crore. However, there was a slight dip in the EBITDA margin, which decreased to 25.2% from 25.6% in the previous fiscal year.

Growth Amid Challenges

During the latest quarter, Nestlé India experienced a 2% increase in volume growth. Despite facing pressures from rising prices of essential raw materials like coffee and cocoa—key components of their popular Nescafé and KitKat products—the company has managed to maintain stability. The surge in milk prices, particularly noted with the arrival of summer, has further added to the challenges in managing input costs.

• Key points:
  • Revenue: ₹5,503.8 crore
  • EBITDA Growth: 2.9%
  • Volume Growth: 2%

Consumer Demand Dynamics

Urban consumption has been under strain due to high living costs and stagnant wage growth. Nevertheless, Nestlé India has reported impressive double-digit growth in its beverages and confectionery sectors. Remarkably, three out of four product categories have shown robust performance. Additionally, segments such as milk products, pet care, and out-of-home consumption have also played a significant role in driving overall growth.

Strategic Initiatives for Expansion

To enhance its market presence, Nestlé India is actively expanding its distribution channels and has launched specially tailored e-commerce packs aimed at boosting online sales. This strategic move is designed to cater to the evolving consumer preferences for convenience and accessibility.

Dividend Announcement and Leadership Changes

In a move to reward shareholders, the board has declared a ₹10 per share dividend, with the distribution set for July 24. Furthermore, Manish Tiwary, formerly the country manager at Amazon India, will step into the role of managing director starting August 1. Additionally, PR Ramesh has had his tenure as an independent non-executive director extended for another five years, lasting until June 30, 2030.

Nestlé India’s latest performance highlights its resilience and adaptability in a challenging economic landscape, positioning the company well for future growth and innovation.