Revenue for the quarter increased by 6% to ₹5,096 crore, which were in-line with the expectations of ₹5,080 crore.
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter remained flat from last year to ₹1,100 crore, which was marginally below the ₹1,135 crore estimates.Nestle India highlighted that borrowing from commercial banks to fund temporary operational cash-flow requirements, resulted in higher finance costs during the quarter.
EBITDA margin narrowed to 21.6% from 22.9% last year, and also below the CNBC-TV18 poll estimate of 22.3%.
The management also attributed the quarterly performance to be impacted by elevated consumption prices across the commodity portfolio. In addition, there were also higher operating costs due to expansion activities that the company undertook recently.”However, we noticed stabilising prices for edible oil and cocoa, a declining trend in coffee and stabilising to modest increase in the price of milk,” the management said.
The management also noted that there has been a significant rise in demand over the recent quarters, which has led to a growth in urban markets.
With the onset of monsoons, milk prices are anticipated to decline, according to the management.
Other highlights from the quarter:
- Confectionery category saw high double-digit growth
- Prepared dishes and cooking aids category swung back to volume growth
- Milk products and nutrition category had mixed growth performance
The next major trigger for the company is the fact that Manish Tiwary takes on the role of Chairman and Managing Director from August 1, 2025.
Shares of Nestle India fell as much as 5.1% after the results announcement, and are now trading at ₹2,326.
