Nestle India September quarter profit falls 17.4 pc to Rs 743 cr, parent firm to layoff 16,000 jobs

New Delhi, Oct 16 (PTI) FMCG major Nestle India Ltd on Thursday reported a 17.37 per cent decline in consolidated net profit to Rs 743.17 crore in the September 2025 quarter.

The company had posted a net profit of Rs 899.5 crore in the July-September quarter a year ago, according to a regulatory filing by Nestle India, which owns popular brands such as Maggi, Nescafe and Kit Kat.

Its revenue increased 11 per cent to Rs 5,630.23 crore in the September quarter, marking the highest sales ever recorded in any quarter. It was Rs 5,074.76 crore in the corresponding period of the last fiscal year.

Earlier in the day, its Swiss parent entity announced plans to cut 16,000 jobs as new Chief Executive Officer Philipp Navratil seeks to accelerate a turnaround of the company.

This job cut will affect 5.8 per cent of Nestle's employees globally.

When asked whether it would have a repercussion on its India operation, a Nestle India spokesperson said: "The workforce reduction applies to markets and functions globally over the next two years. The plan will be subject to consultations with various markets." India is among the top ten global markets for the Vevey (Switzerland)-based company.

Nestle India's total expenses rose 12.9 per cent to Rs 4,616.73 crore in the second quarter of this financial year.

In the September quarter, Nestle India's domestic sales climbed 10.8 per cent to Rs 5,411.02 crore, as against Rs 4,883.14 crore in the corresponding period of the previous fiscal.

Chairman and Managing Director Manish Tiwary said domestic sales grew at a double-digit rate, led by volume growth.

"Three out of four product groups delivered strong volume, led by double-digit growth. Our domestic sales reached Rs 5,411 crore, the highest ever recorded in any quarter," he said.

This is the first earnings under the leadership of Tiwari, who took charge of the company after his predecessor, Suresh Narayanan, retired on July 31, 2025.

During the quarter, Nestle's revenue from operations, which includes other operating revenue, was at Rs 5,643.61 crore, up 10.6 per cent.

In the domestic market, Nestle reported growth in channels like e-commerce, where it saw acceleration in quick commerce, supported by festive integrations, product launches, targeted demand generation, and improved platform availability.

While in the organised trade, Nestle India also "delivered strong broad-based growth across categories driven by festive activations and scale-up new product launches".

According to Nestle, its confectionery product group grew at a strong double-digit rate, driven by Kit Kat, which continued to gain market share.

"India remains the second-largest Kit Kat market for Nestle worldwide. The expansion of Kit Kat's numeric distribution, particularly in rural areas, contributed to this growth. Munch and Milkybar also grew at high double-digit rates," it said.

The prepared dishes and cooking aids product group also registered strong double-digit value growth, led by Maggi noodles, which delivered double-digit volume growth.

The milk products and nutrition product group, which includes items like condensed milk, Nestle Nangrow, and Milo, had a mixed performance. Some segments showed growth, while others exhibited muted performance. However, Nestle said it is encouraged by the improving underlying trends in some segments.

Purina, its pet food business, reported high double-digit growth, "achieving its highest turnover" since its integration into the Nestle India business.

Nestle India's exports surged 14.4 per cent to Rs 219.21 crore, driven by strong demand across product groups.

"Maggi noodles and its variants continued to perform well. Expanded our 2/3 portfolio by extending Nescafe bulk into the Middle East. Introduced Nescafe Sunrise in the United Arab Emirates, Saudi Arabia, Singapore, and New Zealand. Launched the Kit Kat range in Singapore and introduced Milkmaid Doy pack in Sri Lanka," it said.

Tiwary further said recent amendments in the Goods and Services Tax (GST) rates by the government are a positive step and "is expected to stimulate consumption, drive affordability and contribute to the overall growth of the FMCG sector and the economy".

He further said Nestle remains firmly focused on a penetration-led volume growth strategy, ensuring its presence across diverse geographies and platforms, making its products accessible to consumers wherever they are.

"To support this vision, we will invest in growth by accelerating our investments in brands and manufacturing capacity, bringing forth innovations that are bolder, bigger, and better. In all our endeavours, we will remain 'fast, focused, flexible,' adapting to market dynamics as they evolve," he said.

Regarding the commodity outlook, Nestle India said milk prices are expected to soften after the festive season, coinciding with the onset of the flush season.

"Coffee prices are anticipated to stabilise and may decrease as the upcoming crops in Vietnam and India appear to be normal. The global supply and demand for cocoa are projected to balance, primarily due to a correction in demand over the past two years. Edible oil prices are expected to remain firm and may rise further due to a tight supply and demand at the global level," said Nestle.

Shares of Nestle India Ltd on Thursday closed at Rs 1,276.55 apiece on BSE, up 3.86 per cent from the previous close. PTI KRH HVA