Nestlé India reported robust Q2 results, driven by double-digit domestic sales growth. Volume growth fueled the positive performance, with three out of four product groups achieving strong double-digit expansion. Domestic sales reached a record INR 5,411 crore for the quarter. The Confectionery and Powdered & Liquid Beverages segments were key contributors, while the Prepared Dishes & Cooking Aids group also registered strong value growth.
Q2 Financial Performance
Nestlé India’s domestic sales grew at a double-digit rate, led by volume, reaching INR 5,411 crore in Q2. Three out of four product groups delivered strong volume-led double-digit growth.
Segment Highlights
Confectionery
The Confectionery product group experienced strong double-digit growth, with KITKAT being a primary driver. India remains the second largest KITKAT market for Nestlé worldwide. The group expanded numeric distribution of KITKAT, particularly in rural areas. MUNCH and MILKYBAR also grew at high double-digit rates.
Powdered and Liquid Beverages
This product group delivered another quarter of high double-digit growth, led by NESCAFÉ.
Prepared Dishes and Cooking Aids
This product group registered a strong double-digit value growth, supported by accelerated volume growth. MAGGI Noodles delivered double-digit volume growth.
Milk Products and Nutrition
The performance of this product group was mixed. However, there were encouraging improving trends in some segments.
Pet Food
The Pet Food business reported high double-digit growth, achieving its highest turnover since its integration into Nestlé India.
Out-of-Home (OOH) business
The Out-of-Home (OOH) business displayed strong double-digit growth, with India becoming the fastest growing market for Nestlé OOH in the Zone. The company is now the second largest OOH business in Zone Asia, Oceania and Africa.
Financial Figures
Key financial highlights for the quarter:
- Total Sales: INR 5630.2 crore
- Total Sales Growth: 10.9%; Domestic Sales Growth: 10.8%
- EBITDA: 22.0% of Sales
- Profit After Tax: INR 753.2 crore
- Earnings Per Share (EPS): INR 3.90
Business Outlook
The company is witnessing acceleration in quick commerce, supported by festive integrations. Organized trade delivered strong broad-based growth across categories.
Milk prices are expected to soften after the festive season. Coffee prices are anticipated to stabilize. The global supply and demand for cocoa are projected to balance. Edible oil prices are expected to remain firm. Source: BSE
