In the first quarter of FY25, Nestle India reported a net profit of ₹746.6 crore, up 7% from ₹698.3 crore the previous year.
In Q1FY25, the FMCG major’s revenue climbed by 3.3% to ₹4,814 crore from ₹4,658.5 crore YoY.
Why is Nestle India’s stock price falling?
Nestle India shares fell more than 5% to an intraday low. The price decrease occurred after the corporation was discovered to be adding sugar to newborn milk and cereal goods throughout the country, as well as in other Asian and African countries.
“Despite external obstacles such as weaker consumer growth, fears about sustained food inflation, and volatile commodity costs, we have delivered growth across our product categories. “Almost a quarter of our growth has been driven by mix and volume, and we expect this trend to continue in the coming months,” said Suresh Narayanan, Chairman and Managing Director of Nestlé India.
Why is Nestlé so successful?
Nestlé is trusted by people all around the world to provide high-quality foods and beverages. Our established value-creation methodology enables us to invest, innovate, and grow even during difficult times, making us trustworthy to our shareholders and other stakeholders.
He stated that 5 of the company’s top 12 brands climbed by double digits, while its Beverages segment experienced strong double-digit growth.
In the June 2024 quarter, Maggi’s earnings before interest, tax, depreciation, and amortization (EBITDA) increased by 4.3% to ₹1,103 crore from ₹1,058.8 crore the previous year. EBITDA margin rose by 20 basis points (bps) to 22.9%, up from 22.7% year on year.
“Coffee and cocoa commodity prices are encountering severe pressures, with unprecedented highs and ongoing increases.” Cereals and grains are experiencing structural cost increases, which are backed up by MSP. Milk prices, packaging, and culinary oils are mostly stable, according to Nestle India.
What is the dividend for Nestle India in 2024?
Key Highlights. Consumer defensive stocks do not always pay dividends, but Nestle India Ltd does so to reward its owners. Nestle India Ltd paid a dividend of ₹2.75 for the quarter ended June 2024, yielding 6.09%.
E-commerce maintained its upward trend, accounting for 7.5% of domestic sales and rising at a double-digit pace. Despite significant challenges from terrible weather conditions in India, the out-of-home industry maintained its growth pace.
Nestle India increased its focus on distribution infrastructure as part of its RUrban strategy during the quarter, adding over 800 new distribution touchpoints such as cash distributors, re-distributors, and wholesale hubs. Furthermore, it expanded its village coverage by 5,000, bringing it to 2,05,000 villages.
On July 8, Nestle India’s Board of Directors announced an interim dividend of ₹2.75 per share for the fiscal year 2024-25, amounting to a total of ₹2.65 billion. The corporation will pay the dividend on August 6, along with the final dividend of ₹8.5 for the fiscal year ending March 31, 2024.
Nestle India shares fell 1.60% to ₹2,503.10 a share on the BSE at 11:35 a.m.
Is Nestle a smart investment?
The short-term Moving Average signals a purchase for Nestlé S.A., while the long-term average signals a general sell. Because the long-term average is higher than the short-term average, the stock has a general sell signal, implying a more bearish outlook.
Read Also: Nestle India increases by 3% while keeping up its present royalty payments to the parent company
