Nestlé India Limited has reported strong financial results for the first quarter, alongside a significant leadership change. The company has demonstrated resilience in the face of challenging market conditions, with notable growth across several key product categories.

Financial Highlights

Nestlé India posted total sales of INR 5,074.00 crore for Q1, marking a 5.9% increase in total sales growth. Domestic sales grew by 5.5%, indicating strong performance in the Indian market. The company's EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) stood at 21.7% of sales, while net profit reached INR 659.20 crore. Earnings per share for the quarter were reported at INR 6.84.

Product Category Performance

The company witnessed volume-led growth across three of its four product group categories:

1. Powdered and Liquid Beverages: This category emerged as one of the largest growth drivers, registering strong double-digit growth. NESCAFÉ further solidified its leadership in the coffee category by gaining additional market share.

2. Prepared Dishes and Cooking Aids: The category returned to volume growth, with MAGGI noodles recording double-digit growth. Masala-Ae-Magic also demonstrated strong performance.

3. Confectionery: High double-digit growth was observed, driven by robust underlying volume growth. KITKAT emerged as the largest growth driver, particularly in RUrban markets.

4. Milk Products and Nutrition: This category showed mixed performance, with certain segments demonstrating growth while others remained muted.

Business Highlights

• E-commerce maintained its growth momentum, contributing to 12.5% of domestic sales.
• The Out-of-Home business consistently grew at double-digit rates.
• Nestlé Professional achieved a milestone with 1,000 Retail One kiosks operational across India.
• The Pet Food business witnessed strong performance, primarily driven by the Cat portfolio.

Leadership Transition

In a significant development, Nestlé India announced the appointment of Mr. Manish Tiwary as the new Chairman and Managing Director, effective August 1, 2025. Mr. Tiwary, aged 55, brings nearly three decades of experience in the e-commerce and consumer goods sectors. He will succeed Mr. Suresh Narayanan, who is set to retire on July 31, 2025.

Mr. Tiwary's appointment marks a new chapter for Nestlé India. His diverse experience, including roles at Amazon India and Unilever, is expected to bring fresh perspectives to the company's operations and strategy.

Market Challenges and Outlook

Despite the strong performance, Nestlé India faced challenges during the quarter, including elevated consumption prices across the commodity portfolio and higher operations costs due to recent manufacturing expansions. However, the company noted stabilizing prices for edible oil and cocoa, a declining trend in coffee prices, and a stabilizing to modest increase in milk pricing.

Looking ahead, coffee prices are expected to remain range-bound at current lower levels, while cocoa and edible oil prices have stabilized. Milk prices are anticipated to decrease with the onset of a favorable monsoon and flush season.

As Nestlé India transitions to new leadership, the company appears well-positioned to continue its growth trajectory, leveraging its strong brand portfolio and strategic initiatives in e-commerce and out-of-home segments.

Extraordinary General Meeting

On July 24, 2025, Nestlé India held an Extraordinary General Meeting to approve the issuance of bonus equity shares in the ratio of 1:1 and an increase in the authorized share capital. The results of the voting on these resolutions are pending and will be submitted to the stock exchanges separately.

As Nestlé India embarks on this new phase under incoming leadership, stakeholders will be keenly watching how the company navigates the evolving market dynamics and builds upon its strong foundation in the Indian market.

Nestlé India Limited has announced its financial results, showcasing a steady performance with volume-led growth across multiple product categories. The company reported a total sales growth of 5.9%, with domestic sales increasing by 5.5%.

Key Financial Highlights

The company achieved a 3% growth in domestic volume, aligning with market estimates of 2-3%. This performance met analyst expectations, demonstrating Nestlé India's resilience in a challenging market environment.

Category-wise Performance

Nestlé India reported balanced growth across three of its four product group categories:

1. Powdered and Liquid Beverages: This category remained a significant growth driver, registering strong double-digit growth. NESCAFÉ further solidified its leadership in the coffee category by gaining additional market share.

2. Prepared Dishes and Cooking Aids: The category returned to volume growth, with MAGGI noodles recording double-digit growth. Masala-Ae-Magic also demonstrated strong performance with double-digit growth.

3. Confectionery: The segment saw high double-digit growth, driven by robust underlying volume growth. KITKAT emerged as the largest growth driver, achieving double-digit growth, particularly in RUrban markets.

4. Milk Products and Nutrition: This category showed mixed performance, with certain segments displaying growth while others had muted performance.

Business Highlights

• E-commerce maintained its growth momentum, contributing 12.5% to domestic sales.
• The Out-of-Home business consistently grew at double-digit rates.
• Nestlé Professional achieved a milestone with 1,000 Retail One kiosks operational across India.
• The Pet Food business witnessed strong performance, primarily driven by the Cat portfolio.

Management Commentary

Mr. Suresh Narayanan, Chairman and Managing Director of Nestlé India, commented on the results: "I am pleased to inform you that we have delivered a balanced growth in three out of our four product group categories. Prepared Dishes and Cooking Aids, Powdered and Liquid Beverages, and Confectionery have bounced back to volume-led growth. Seven out of twelve top brands grew at double-digit."

He also noted that the quarter was impacted by elevated consumption prices across the commodity portfolio and higher operations costs due to significant manufacturing expansion in recent months.

Future Outlook

While the company faces challenges from commodity prices and operational costs, there are positive signs on the horizon:

• Coffee prices are expected to remain range-bound at current lower levels.
• Cocoa and Edible Oil prices have stabilized.
• Milk prices are anticipated to decrease with the onset of a favorable monsoon and flush season.

As Nestlé India continues to navigate these market conditions, its focus on volume-led growth and strategic expansion in key categories positions it well for future growth.

Leadership Transition

The company also announced a leadership change, with Mr. Manish Tiwary set to assume the role of Chairman and Managing Director of Nestlé India from August 1, 2025, following Mr. Suresh Narayanan's retirement on July 31, 2025.

Nestlé India's results demonstrate the company's ability to maintain growth momentum despite market challenges, setting a positive tone for the rest of the financial year.