Nestle India delivers volume led double-digit sales growth

  • Nestlé India delivers volume led double-digit sales growth 

  • The Board of Directors of Nestlé India today approved the results for the second quarter of financial year 2025-26. 
  • Commenting on the results, Mr. Manish Tiwary, Chairman and Managing Director of Nestlé India stated, “I am happy to report that domestic sales grew at a double-digit rate, led by volume growth. Three out of four product groups delivered strong volume led double-digit growth. Our domestic sales reached INR 5,411 crore, the highest ever recorded in any quarter. I would like to thank our employees for their commitment and resolve. 
  • The recent amendments in the Goods and Services Tax (GST) rates announced by the Government of India is a positive step for consumers. 
  • It is expected to stimulate consumption, drive affordability and contribute to the overall growth of the FMCG sector and the economy. 
  • Been working closely with partners, distributors, wholesalers, and retailers, to pass on the benefits of the revised GST rates, across  product groups to consumers. 
  • The Confectionery product group grew at a strong double-digit rate, driven by significant underlying volume growth. KITKAT was the largest growth driver and continued to gain market share. 
  • India remains the second largest KITKAT market for Nestlé worldwide. 
  • The numeric distribution expansion of KITKAT, particularly in rural areas, contributed to this growth. MUNCH and MILKYBAR also grew at high double-digit rates. 
  • The Powdered and Liquid Beverages product group delivered another quarter of high double digit growth. 
  • NESCAFÉ continued to lead the coffee category, gaining market share and increasing household penetration. 
  • The Prepared Dishes and Cooking Aids product group registered a strong double-digit value growth on the back of accelerated volume growth. 
  • MAGGI Noodles delivered a double-digit volume growth, while Masala-ae-Magic continued its strong run. 
  • The Milk Products and Nutrition product group had mixed performance, with certain segments showing growth while others exhibited muted performance. 
  • Nonetheless, encouraged by the improving underlying trends in some segments. 
  • The Pet Food business reported high double-digit growth, achieving its highest turnover since its integration into the Nestlé India business. 
  • The PURINA FRISKIES cat food brand launched two new variants: Meaty Grills and Indoor Delights.
  •  Nestlé Professional, the Out-of-Home (OOH) business, displayed strong double-digit growth. 
    • This reflects the business’s dedication to evolve its portfolio into a comprehensive solution provider for operator needs within the Food & Beverage sector. 
    • India is the fastest growing market for the Nestlé OOH business in the Zone and now ranks as the second largest in size in Zone Asia, Oceania and Africa.

 https://youtu.be/uFPYtKxOn2U?si=gt5gp2Pq6Qn5VsmB

  • From its inception here to 2020, Nestle India has invested Rs 7,000 crore but the investment in the last five years by the company is more than what it had done in the last 20-25 years
  • FMCG major Nestle is expanding its manufacturing footprints and operations in India, for which it will end up investing Rs 6,000 to 6,500 crore between 2020-2025, to meet the growing demand, its India Chairman and Managing Director Suresh Narayanan
  • Nestle India, which owns popular brands such as Maggi, Nescafe, KitKat etc is setting up its tenth factory at Orissa and is increasing existing capacities in our manufacturing of prepared dishes, which is the mainly Maggi range, doubling its coffee business, increasing chocolate lines and augmenting investment in distribution chains.
  • Over the demand scenario, Narayanan said the urban market has opened up dramatically, having a strong sweet spot, while the smaller tier II, III, IV & V are also opening up and Nestle is supporting them with relevant portfolio intervention and distribution expansion.
  • "In fact, if you look at urban penetration now for the company, which five years ago was about 80 per cent today it is about 93 per cent and similarly, rural penetration also has gone up significantly to rate to about 30 odd per cent, which was in a mid to high single digits a couple of years ago," he said.
  • This as a cumulative effect has led to good results. In the last 28 quarters or 22 quarters, Nestle India has reported double-digit quarters, he said.
  • The growth is also reflected in the capex of the company, which is now investing 8 per cent of its turnover on capex, which is much higher than what it ever was.

 Thank you for contacting Rounaq! Please let us know how we can help you. 

Whatsapp: 7838491131

SEBI registered RA : Rounaq Bakshi
Waheguru

Comments

Post a Comment

Popular posts from this blog

Transcript of NMDC Limited post Q4 & FY 2024-25 Results

Image
Transcript of NMDC Limited post Q4 & FY 2024-25 Results Growth in PAT on an annual or a year-on-year 12-month basis of around 19% and PBT after exceptional item of around 16% Gold operations in Legacy, the first year was have also stabilized Legacy in the last 2 months, 3 months.  And hopefully, in this financial year, Legacy would also be showing good profits IMPORTS India which imports around 55 million, 60 million tons is likely to go up to 150 million to 160 million tons of import for India in terms of coking coal.  Have entered into arrangement with SAIL 60% of total sales as of date is routed through SAIL because send it to their stocking yard.  So based on the user charge, they also market mmdc products 40% still Nmdc market directly in terms of HR coils 2025 year will be much more substantially action packed in terms of NMDC Open new mines within India, coal and iron ore Outside India, we hope to acquire a few mines.  This will be a year where it will be ...
Read more

Looking to park some excess funds for the short term.?

Image
Looking to park some excess funds for the short term.  LiquidBeES by Nippon - has been the default choice for years. But lately, it’s become muscle memory to run everything past ChatGPT.  Just a quick: “Is there a better option than LiquidBeES?” It turns out, there is.  LIQUIDCASE by Zerodha AMC.  Difference was not subtle and decision was easier : - Expense ratio: Less than half of LiquidBeES - Net returns: ~6.2% vs ~5.7% (1-year annualized) - Same safety, same liquidity - AUM already >1/3rd of LiquidBeES in record time This is how discovery is changing. And this is how smart products go viral. Zerodha didn’t try to educate the market.  Discovery is no longer driven by ads or advisors.  It’s driven by habit, trust, and tools like ChatGPT. And when you get it right, traction follows fast. I won’t be surprised if LIQUIDCASE overtakes LiquidBeES in under 18 months. Thank you for contacting Rounaq! Please let us know how we can help you.  About me :...
Read more

𝐖𝐡𝐲 𝐃𝐨 𝐍𝐑𝐈𝐬 𝐈𝐧𝐯𝐞𝐬𝐭 𝐢𝐧 𝐈𝐧𝐝𝐢𝐚?

Image
  𝐖𝐡𝐲 𝐃𝐨 𝐍𝐑𝐈𝐬 𝐈𝐧𝐯𝐞𝐬𝐭 𝐢𝐧 𝐈𝐧𝐝𝐢𝐚? Whether you're living in the US, UAE, UK, or Singapore; India continues to be a hotspot for wealth creation. But why do so many NRIs still invest here? Here’s why 👇 ✅ Higher Returns – Indian equity markets, mutual funds, and even fixed deposits offer attractive long-term returns. ✅ Tax-Free Income – Interest from NRE and FCNR deposits is tax-free in India. Plus, DTAA helps avoid double taxation. ✅ Currency Edge – You invest in INR, and with the right timing, your gains in foreign currency terms could be even higher. ✅ Diversification – Indian assets like gold, real estate, and stocks add balance to a global portfolio. ✅ Future Ready – Planning to return to India someday? Build your base early with property or retirement-focused investments. ✅ Emotional Roots – Beyond numbers, India is still home. 💡 Whether it’s for wealth creation, retirement planning, or building assets back home, India offers a solid mix of growth + stability...
Read more