Nestlé India has announced its Q1 FY26 results, reporting a 13.4% year-on-year (YoY) drop in profit after tax (PAT). The company's consolidated PAT for the quarter stood at ₹646.58 crore, compared to ₹747 crore in the same quarter last year.
Financial Performance
Despite the dip in profit, Nestlé India reported a 6% rise in revenue. Revenue from operations increased to ₹5,096 crore, up from ₹4,814 crore in the corresponding quarter of the previous financial year. Total sales were reported at INR 5074.0 crore, with a total sales growth of 5.9%. Domestic sales growth stood at 5.5%. The company's EBITDA was 21.7% of sales, and the earnings per share were INR 6.84.
Several other companies are also set to announce their Q1 earnings.
Factors Influencing Results
While the specific reasons for the decline in profit were not explicitly stated in the provided context, mentions that the profit drop is due to higher costs. Rising commodity prices are pushing product prices higher for consumers.
Nestlé's Global Performance
Nestlé's Q1 2025 sales report reveals a 2.8% organic sales growth, with 0.7% real internal growth (RIG), despite challenging market conditions. Laurent Freixe, Nestlé CEO, stated that the company delivered organic sales growth amidst heightened macroeconomic and consumer uncertainty. The strongest organic growth was seen in confectionery (8.9%) and coffee (5.1%), with double-digit increases in some markets. Nestlé Health Science also experienced strong organic growth, though it slowed to 4.2%, while PetCare saw a 1.6% increase in organic sales.
Strategies and Outlook
Nestlé is prioritizing growth by driving efficiencies and investing in key categories to improve market share. The 'Fuel for Growth' cost savings program, established in 2024, aims to provide resources to accelerate performance. The company is investing in strengthening its core business and rolling out innovations like Nescafé Espresso Concentrate. Despite a weakening market, Nestlé remains cautiously optimistic, with its 2025 guidance unchanged. The company is focused on adapting to current tariffs and executing its strategy effectively.
