Nestlé India announced the company’s performance for Q3 FY25 with three out of four product groups achieving healthy growth. As per the company, the powdered and liquid beverages segment led the growth this quarter, delivering high double-digit growth. The business surpassed a significant milestone, achieving over Rs 2,000 crore in retail sales over the past 12 months, primarily driven by NESCAFÉ CLASSIC, NESCAFÉ SUNRISE and NESCAFÉ GOLD.
The company reported total sales of Rs 4,762.1 crore for the period, reflecting a sales growth of 3.9%. Domestic sales growth stood at 3.3%. The company achieved a profit from operations of 20.3% of sales, highlighting strong operational efficiency. Net profit for the period amounted to Rs 696.1 crore.
The NESCAFÉ brand has further strengthened its leadership position, gaining market share and bringing 3.7 million households into the coffee category. Suresh Narayanan, Chairman and Managing Director of acknowledged the contribution of 5,000 coffee farmers in Karnataka, Kerala and Tamil Nadu, whose dedication and high-quality coffee beans have been instrumental in delivering the perfect cup of coffee.
Nestlé India’s distribution reach has expanded significantly over the past year, with an almost 5% increase in outlet expansion, as reported by Nielsen. The RUrban strategy, which focuses on increasing rural penetration, continues to be a critical factor in driving this distribution growth.
In a significant move for the premium coffee market, Nestlé India launched its NESPRESSO portfolio earlier in 2024, offering coffee capsules, machines, accessories and recipes. Notedly, the first NESPRESSO boutique will soon open in Delhi, with plans for further expansion across major cities.
Other notable performances include high single-digit growth in the confectionery segment, with KITKAT leading the charge. The prepared dishes and cooking aids segment, particularly MAGGI noodles and Masala-ae-Magic, also saw strong growth. In the nutrition business, products targeting toddlers and specific nutritional needs continued to perform well.
The company is also ramping up manufacturing capacity with the commissioning of its third confectionery unit at the Sanand factory, which will manufacture KITKAT as part of its larger Rs 5,800 crore capital expenditure plan for the 2020-2025 period.
The Petcare business delivered its highest growth since being integrated into Nestlé India in 2022, with Felix, a premium cat food brand, standing out as a key performer.
The joint venture with Dr. Reddy’s Laboratories in Nestlé Health Science has also proven successful, with good synergies and strong growth across the portfolio, reinforcing the company’s focus on health and wellness.
Nestlé India’s Out-of-Home business reported strong double-digit growth, particularly in the food and beverage solutions category. E-commerce also continued its growth trajectory, posting high double-digit growth and contributing 9.1% to domestic sales. New product innovations since 2015 now account for approximately 7% of total sales.
The company also faced external pressures, including food inflation and fluctuating urban consumption, with rural markets showing gradual recovery. Narayanan extended his appreciation to employees, distributors, retailers, and partners for their resilience in navigating these challenges.
Environmental sustainability remains a core focus for Nestlé India. The company has made significant strides in reducing climate impacts, including the installation of 5,800 small and 200 large biodigesters in dairy farms across Punjab and Haryana to reduce methane emissions and provide renewable energy. This initiative has improved manure management and promoted sustainable agricultural practices.
Additionally, Nestlé’s Project Vriddhi, launched five years ago in Nuh district, continues to make a significant impact on local communities. The project has transformed 14 villages by improving agricultural practices, engaging 1,000 farmers, restoring eight ponds with a storage capacity of 25 million liters, and providing digital literacy and skill-building opportunities for women and children. The project has positively impacted 18,000 individuals, contributing to improved development indicators in the region.