Nestle India Navigates Demand Slump and Rising Commodity Prices

Nestle India Ltd reported a slight decline in net profit for Q2 2024, citing muted consumer demand and high commodity prices. The company saw modest revenue growth driven by emerging channels like e-commerce, while traditional brands faced pressure. Innovations and strategic marketing remain focal points for future growth.

FMCG giant Nestle India Ltd reported a marginal decline of 0.94% in its net profit for the second quarter ending September 2024, attributing the dip to softer consumer demand and high commodity prices.

The company's net profit stood at Rs 899.49 crore, down from Rs 908.08 crore a year ago. Despite the challenges, Nestle observed a 1.3% rise in sales revenue, reaching Rs 5,074.76 crore for the period.

Nestle's strategy to drive growth includes leveraging e-commerce and enhancing brand equity through innovative products and strategic marketing campaigns, while focusing on premiumisation and expanding its footprint both domestically and internationally.

(With inputs from agencies.)