Nestle India Battles Rising Costs and Demand Drop

Nestle India Ltd. reported a slight net profit decline of 0.94% for the September 2024 quarter amid high commodity prices and weaker demand for key brands. Despite a revenue increase, total expenses rose by 3.42%, affecting profitability, with domestic and export sales showing modest growth.

Nestle India Ltd, a leading player in the FMCG sector, announced a marginal decline of 0.94% in its net profit, amounting to Rs 899.49 crore, for the quarter ended September 2024. The company faced challenges including high commodity prices and softer consumer demand for its major brands.

Despite the drop in profit, Nestle India's revenue from product sales rose by 1.3% to Rs 5,074.76 crore, compared to Rs 5,009.52 crore in the same period last year. The company's domestic sales saw a slight increase of 1.23%, while export revenues climbed by 3.13%.

Total expenses for the quarter increased by 3.42% to Rs 4,090.09 crore, impacting the overall earnings as shares traded at Rs 2,398, marking a 2.61% decrease in afternoon trade on the BSE.

(With inputs from agencies.)