Nestlé India reported a 24% year-on-year (YoY) drop in net profit for the second quarter, amounting to ₹753 crore. Despite this decline, the company's domestic sales hit a record high.

The company's revenue from operations for the quarter increased by 10.57% to ₹5,643.61 crore, compared to ₹5104 crore during the same period last year.

According to a regulatory filing from Nestlé India, the company's net profit was ₹899.49 crore for the quarter that ended in September 2024, a marginal decrease of 0.94%. The business reported a net profit of ₹908.08 crore for the July-September period the previous year.

Revenue from the sale of products increased by 1.3% to ₹5,074.76 crore in the September quarter. It was ₹5,009.52 crore in the corresponding period of the previous fiscal year.

Suresh Narayanan, Chairman and Managing Director, stated that the company remained resilient in its pursuit of growth despite a challenging external environment characterized by muted consumer demand and high commodity prices, especially for coffee and cocoa.

Nestlé India's domestic sales increased 1.23% to ₹4,883.14 crore, from ₹4,823.72 crore in the same period last year. According to the company's earning statement, domestic sales growth in organized trade, which includes retail chains and hypermarkets, was "spurred by noodles, beverages, and overall premiumisation".

The company's revenue from exports also increased by 3.13% to ₹191.62 crore in the September quarter. The export business "continued to expand its footprint by introducing new SKUs across categories to Canada, Middle East, Maldives and Papua New Guinea," according to the company.

Nestlé India's revenue from operations, which includes other operating revenue, was up 1.33% to ₹5,104 crore. It was ₹5,036.82 crore in the previous September quarter. Total income for Nestlé India, which owns popular brands such as Maggi, Nescafe, and Kit Kat, was flat at ₹5,110.86 crore as revenue from other income sources decreased.

On a standalone basis, the PAT for the reported quarter was ₹986 crore, up 8.5% from ₹908 crore in the same period last year. There was an exceptional loss of ₹183 crore, up from ₹106 crore reported by the FMCG major in the corresponding quarter of the previous financial year.

EBITDA decreased 4.7% during the quarter that ended in September 2024 to ₹1,168 crore from ₹1,225 crore, while EBITDA margin decreased 130 basis points (bps) to 22.9% from 24.2% year over year.

Five of the company's top twelve brands saw double-digit growth during the quarter. However, some key brands experienced pressure as a result of weaker consumer demand, and the company is concentrating on those brands and has strong action plans in place. In the last nine months, 65% of the company's top 12 brands, including MAGGI noodles, have demonstrated positive volume growth.