Nestle India Q4 Net Profit Drops 5% YoY to ₹885 Crore

25 Apr 2025 , 04:46 PM

Nestle India Ltd., the FMCG major whose iconic Maggi noodles are one of its largest brands, announced a 2% year-on-year domestic volume growth for fourth quarter FY25, ending March 31, 2025.

Net profit in Q4FY25 was ₹885 crore, which declined 5% from ₹934 crore posted during the corresponding period last year. Although net profit reduced, operating revenue increased by 4.4% year-on-year to ₹5,504 crore. Last year’s corresponding quarter revenue was ₹5,267.6 crore.

For the quarter, Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) was ₹1,389 crore. This is an increase of 3.9% from ₹1,337.3 crore in the same quarter last year.

EBITDA margin narrowed by 20 basis points to 25.2% from 25.4% last year, but was still above the market expectation of 24.4%. The margin fall was due to high cocoa prices and overall poor operational performance.

Commodity prices were firm, particularly for coffee. Although cocoa prices have corrected a bit, they still remain firm. Edible oil prices are stable, while milk prices firmed up cyclically with the onset of summer.

The company announced a final dividend of ₹10 per equity share for FY25. The record date for the dividend is July 4, 2025. Double-digit growth was experienced in Beverages and Confectionery segments, reflecting high demand in top categories. Three out of the company’s four core categories reported healthy growth patterns in the quarter.

Nestle India posted its highest-ever domestic sales in a quarter as a result of better volume growth and sustained consumer preference in the packaged foods business.