- Nestle India‘s net income for the second quarter was 9.86 billion rupees, an 8.6% increase year-on-year, surpassing the estimated 8.83 billion rupees.
- Revenue was slightly below expectations at 51 billion rupees, with a year-on-year growth of 1.2%, compared to the estimate of 53.43 billion rupees.
- Domestic sales reached 48.8 billion rupees, marking a 1.2% growth, while export sales were 1.92 billion rupees, up by 3.2% year-on-year.
- Total costs rose to 40.9 billion rupees, up by 3.5%, and raw material costs increased by 5.7% to 20.3 billion rupees.
- Other income experienced a significant decline of 79% year-on-year, amounting to 68.6 million rupees.
- The company announced the appointment of Manish Tiwary as Managing Director, effective from August 1, 2025.
- The second quarter included a one-time gain of 2.91 billion rupees from the slump sale of the nutraceutical business.
- Commodity prices, especially for coffee and cocoa, remain high, although milk and packaging prices have shown relative stability.
- Nestle’s Managing Director, Suresh Narayanan, highlighted the challenging external environment with muted consumer demand and high commodity prices.
- Five of Nestle’s top twelve brands achieved double-digit growth this quarter, but some key brands faced softer consumer demand, prompting focused action plans.
- Despite good income performance, Nestle’s shares fell by 2% to 2,413 rupees, with a trading volume of 905,396 shares.
- Analyst recommendations include 16 buys, 17 holds, and 5 sells.
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A look at Nestle India Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 5 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Investors looking at the long-term outlook for Nestle India can be encouraged by the company’s strong performance across various key factors. With a high Resilience score of 5, Nestle India is well-positioned to weather market uncertainties and challenges, showcasing stability and strength in its operations. Additionally, a solid Dividend score of 4 indicates a consistent track record of rewarding shareholders, making it an attractive choice for income investors.
While the company might not score as high in Value and Growth, with scores of 2 and 3 respectively, its Momentum score of 4 suggests positive market sentiment and potential for future growth. Overall, Nestle India remains a reputable player in the food and beverage sector, offering a diverse range of popular products that cater to a wide consumer base.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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