Khushil Kumar Agrawal

Nestle India Q1 earnings miss estimates

The company announced its June quarter (Q1FY25) results, which missed expectations.

The FMCG major’s profit rose 6.92 per cent on a year-on-year (Y-o-Y) basis to Rs 746.6 crore in June quarter of financial year 2025 (Q1FY25), as opposed to Rs 698.3 crore in the same quarter a year ago (Q1FY24).

At the operating front, Nestle India’s earnings before interest, taxes, depreciation and amortisation (Ebitda) surged 5.6 per cent annually to Rs 1,114.20 crore in Q1FY25, from Rs 1,055.40 crore in Q1FY24.

Consequently, Ebitda margin jumped 50 basis points (bps) to 23.2 per cent in the June quarter of financial year 2025, from 22.7 power cent in the June quarter of financial year 2024.

Nestle now expects sales to grow at least 3%, lower than the roughly 4% it had previously targeted. The world’s biggest food company has struggled to win back market share after inflation pushed shoppers to cheaper brands.

Revenue rose 2.1% in the first half, compared with the 2.5% expected by analysts, the Swiss maker of Maggi stock cubes said Thursday.

Almost all of that growth came from higher pricing which sharply slowed in the second quarter. Nestle’s coffee business, boosted by the rising price of the commodity, was the highest contributor to organic growth, increasing in the mid-single digits.

A cost-of-living crisis has taken its toll on consumers who’ve traded down to supermarket brands, and consumer giants like Nestle have struggled to coax them back. Shares fell 11% over the last year. Managing Director, Nestle India said, “I am pleased to share that despite external challenges such as lower consumption growth, concerns on continued food inflation and volatile commodity prices, we have delivered growth across our product groups. Almost a fourth of our growth has been mix and volume led, and we hope to strengthen this trend in the coming months.”

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