Latest news with #Narayanan
Mint
3 hours ago
- Business
- Mint
Nestlé India Q1 profit falls 12% on higher input, finance costs
New Delhi: Nestlé India Ltd's profit fell in the June quarter because of input cost pressure and higher finance costs for the maker of Maggi noodles and KitKat chocolate. The packaged food company's profit after tax dropped 11.7% year-on-year to ₹ 659.2 crore in the first quarter of FY26, according to its exchange disclosures on Thursday. Total sales grew 5.8% year-on-year to ₹ 5,074 crore during the quarter. The company's expenses increased 9.25%, driven by higher finance and interest costs on employee benefits. "The quarter was impacted by elevated consumption prices across the commodity portfolio. In addition, we witnessed higher operations costs as a result of significant expansion in manufacturing in the last seven to eight months,' said Suresh Narayanan, chairman and managing director, Nestlé India. 'Moreover, borrowing from commercial banks to fund temporary operational cash-flow requirements resulted in higher finance costs in the quarter.' However, Narayanan said, 'We have noticed stabilizing prices for edible oil and cocoa, a declining trend in coffee and stabilizing to modest increase in pricing of milk.' Ebitda at ₹ 1,101.0 crore was flat year-on-year and 6% below estimates of ₹ 1,173 crore, driven by gross margin compression and higher operating expenses. Ebitda is earnings before interest, tax, depreciation and amortization, a measure of operational profitability. The company delivered balanced growth in three out of its four product group categories. Nestlé, which sells coffee, noodles, chocolates, packaged milk, yogurt, and pet food, experienced high input costs over the past few quarters as prices of coffee and cocoa remained elevated. However, coffee prices are expected to remain range-bound at current lower levels, as the upcoming Vietnam crop appears to be normal, the company said. Cocoa and edible oil prices have stabilized and remain range-bound. Milk prices are anticipated to decrease with the onset of a favourable monsoon and flush season, the company said. Analysts said Nestlé's volume growth was 'modest' and the company missed margin expectations due to input cost pressure. 'Nestlé's top-line momentum remains muted for the fifth consecutive quarter, impacted by a broader urban demand slowdown,' brokerage Equirus Research said in a note. 'While key categories such as beverages, confectionery, and prepared dishes saw healthy traction, overall growth was weighed down by continued weakness in the nutrition portfolio. Commodity cost trends warrant close monitoring, as margin recovery may remain constrained in the near term.' Shares of Nestlé closed 5.41% lower at ₹ 2,320.15 apiece on the BSE on Thursday compared with a 0.66% decline in the benchmark Sensex. The prepared dishes and cooking aids category swung back to volume growth, recording double-digit rise for Maggi noodles, said Narayanan. The confectionery category saw high double-digit growth, driven by underlying volume growth. The milk products and nutrition category reported a mixed performance, with certain segments showing growth while a few recording a muted performance. E-commerce maintained its growth momentum, contributing 12.5% of domestic sales, driven by quick commerce and new launches.
Time of India
7 hours ago
- Business
- Time of India
Nestle India appoints ex-Amazon Manish Tiwary as Chairman
FMCG maker Nestle India on Thursday announced the appointment of Manish Tiwary as the Chairman of the board of the company. The incumbent Suresh Narayanan , will relinquish his office as Chairman and Managing Director of the company upon his retirement on July 31, 2025, according to a regulatory update from Nestle India. Explore courses from Top Institutes in Please select course: Select a Course Category Design Thinking Degree Technology Cybersecurity Public Policy MBA Leadership Data Analytics Healthcare PGDM Product Management healthcare CXO Management Artificial Intelligence MCA Data Science Finance others Digital Marketing Project Management Others Operations Management Skills you'll gain: Duration: 25 Weeks IIM Kozhikode CERT-IIMK PCP DTIM Async India Starts on undefined Get Details Skills you'll gain: Duration: 25 Weeks IIM Kozhikode CERT-IIMK PCP DTIM Async India Starts on undefined Get Details Skills you'll gain: Duration: 22 Weeks IIM Indore CERT-IIMI DTAI Async India Starts on undefined Get Details The board of Nestle India in a meeting held on Thursday approved the "appointment of Manish Tiwary as the Chairman of the Board, effective August 1, 2025. Accordingly, Tiwary will assume his office as Chairman and Managing Director of the Company, effective August 1, 2025," the company said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Villa Prices in Dubai Might Be Lower Than You Think! Villa for sale in Dubai | Search Ads Learn More The maker of Maggi, Nescafe and KitKat has already announced a succession plan, appointing Manish Tiwary as a Director and Managing Director for a term of five consecutive years, effective from August 1, 2025 to July 31, 2030. Live Events Tiwary has been appointed as Managing Director (Designate) from February 1, 2025 and as Key Managerial Personnel from April 24, 2025. Prior to that, he was working with e-commerce major Amazon. Narayanan, who steered Nestle India in its most challenging times during the Maggi crisis a decade ago, thanked all stakeholders of the company. "As I conclude my tenure as the Chairman and Managing Director of Nestle India, I extend my heartfelt thanks to our partners, distributors, retailers and suppliers for their collaboration and support. The esteemed Board of Directors for their guidance, trust and wisdom, in both good and more stressful times," he said. Narayanan further said he is "confident" that Nestle India will continue to achieve new heights, moving forward with greater focus and readiness for the future, fostering an inclusive and compassionate environment where every voice is valued. He had joined the board of Directors of Nestle India as Managing Director on August 1, 2015, and was designated as the Chairman and Managing Director of the Company on October 29, 2015. In Nestle, he has held leadership positions in several international markets, including Thailand, Cambodia, Myanmar, Laos, Vietnam, Singapore, Egypt (North Africa Region), and the Philippines.
&w=3840&q=100)
Business Standard
8 hours ago
- Business
- Business Standard
Nestle India Q1 profit down 13% to Rs 647 cr, Manish Tiwary named CMD
Fast-moving consumer goods (FMCG) major Nestlé India reported a 13.3 per cent decline in net profit to Rs 647 crore in the first quarter of financial year 2026 (FY26) on Thursday, amid higher operational costs due to expansion. This is the second straight quarter of the company reporting a decline in net profit. The company had reported a net profit of Rs 746.6 crore in the same period last year. The maker of Maggi noodles and Nescafé coffee, however, flagged volume growth in the June quarter, while reporting a 5.8 per cent rise in net sales to Rs 5,096 crore from Rs 4,814 crore in the year-ago period. The company reported volume growth in three prominent categories — prepared dishes and cooking aids, powdered and liquid beverages, and confectionery. 'I am pleased to inform you that we have delivered a balanced growth in three out of our four product group categories, and seven out of twelve top brands grew at double-digit,' Suresh Narayanan, chairman and managing director, Nestlé India, said in an earnings release. The company noted elevated consumption prices across the commodity portfolio during the quarter, alongside higher operational costs due to expansion, and higher finance costs owing to borrowings from commercial banks to fund temporary operational cash flow requirements. The powdered and liquid beverages category sustained its position as one of the largest growth drivers, registering double-digit growth, while Nescafé gained additional market share. In the confectionery category, KitKat emerged as the largest growth driver, registering double-digit growth, especially in the RUrban market, while Munch and Milkybar also gained momentum. The company's e-commerce business maintained its momentum, contributing to 12.5 per cent of domestic sales, driven by quick commerce, while exports registered high double-digit growth, led by foods, coffee, instant tea and breakfast cereals, despite commodity headwinds. The company also launched Masala-Ae-Magic in the UK market during the quarter. In its commodity outlook, the company said that coffee prices are expected to remain range-bound at current lower levels due to a normal upcoming Vietnam crop. Meanwhile, cocoa and edible oil prices have stabilised and remain range-bound, and milk prices are anticipated to decrease with the onset of a favourable monsoon and flush season. 'As I conclude my tenure as the chairman and managing director of Nestlé India, I extend my heartfelt thanks to our partners, distributors, retailers and suppliers for their collaboration and support; the esteemed Board of Directors for their guidance, trust and wisdom, in both good and more stressful times,' added Narayanan, who is set to retire on 31 July. 'I am confident that Nestlé India will continue to thrive and soar to new heights — moving forward with greater focus and readiness for the future, fostering an inclusive and compassionate environment where every voice is valued. With much gratitude, it has truly been an honour and privilege to serve you. I carry with me cherished memories of the decade gone by,' he added. The company's board has approved the appointment of Manish Tiwary as chairman of the board. He is set to take over as chairman and managing director of the company from August 1.
Hans India
8 hours ago
- Business
- Hans India
Nestle India's Q1 net profit falls 13.4 pc to Rs 646.5 crore
Mumbai: FMCG major Nestle India on Thursday reported a 13.4 per cent year-on-year (YoY) decline in its consolidated net profit, which fell to Rs 646.5 crore in the first quarter of the current financial year (Q1 FY26) from Rs 746.6 crore in the same quarter of the previous year (Q1 FY25). Despite the fall in profit, the FMCG giant recorded a 6 per cent YoY growth in its revenue from operations, according to its stock exchange filing. The revenue rose to Rs 5,096 crore in the April-June 2025 quarter, compared to Rs 4,814 crore during the same period previous year. The increase in revenue was mainly supported by a 5.5 per cent rise in domestic sales, which grew to Rs 4,860 crore from Rs 4,608 crore. Export sales also performed well, rising 16 per cent YoY to Rs 214 crore from Rs 184.5 crore, it said in its filing. The company's total income for the quarter stood at Rs 5,100 crore, up 5 per cent from Rs 4,853 crore in the year-ago period. Product sales reached Rs 5,074 crore, an improvement from Rs 4,793 crore in the same quarter previous year. Other operating revenue increased slightly to Rs 22 crore, compared to Rs 21 crore in the previous year. Suresh Narayanan, Chairman and Managing Director of Nestle India, said that the quarter was affected by high commodity prices and increased operational costs due to recent manufacturing expansions. He also mentioned that borrowing from banks for short-term operational needs led to higher finance costs. However, he added that prices of edible oil and cocoa have started to stabilise, coffee prices are falling, and milk prices are showing a modest increase. Narayanan highlighted that the Powdered and Liquid Beverages category remained one of the top growth drivers for the company, delivering strong double-digit growth. "Nescafe continued to lead the coffee market, gaining more market share. The brand focused on both affordable coffee packs and premium products like Nescafe Gold and Nescafe Roastery," he added.
Mint
9 hours ago
- Business
- Mint
Nestle India Q1 results 2025: Net profit declines 13% to ₹647 crore, revenue at ₹5096 crore
Maggi maker Nestle India, on Thursday, announced financial results for the quarter ending on June 30, 2025. The FMCG player reported a 13.4 per cent year-on-year (YoY) drop in consolidated profit after tax (PAT), which fell to ₹ 647 crore from ₹ 747 crore in the same quarter last year. Despite the decline in profit, the company's revenue from operations grew by 6 per cent YoY, reaching ₹ 5,096 crore, up from ₹ 4,814 crore in the corresponding period of the previous fiscal year. The growth was driven by a 5.5 per cent increase in domestic sales, which rose to ₹ 4,860 crore from ₹ 4,608 crore in the same quarter last year. Export sales also saw an uptick, climbing to ₹ 214 crore from ₹ 184 crore, reflecting a 16 per cent year-on-year rise. For the quarter ended June 30, 2025, the company posted a 5 per cent year-on-year growth in total income, reaching ₹ 5,100 crore compared to ₹ 4,853 crore in the corresponding period the previous year. The FMCG company reported a rise in product sales to ₹ 5,074 crore in Q1 FY26, up from ₹ 4,793 crore in the same quarter last year. Its other operating revenue saw a slight increase to ₹ 22 crore, compared to ₹ 21 crore in Q1 FY25. ' The quarter was impacted by elevated consumption prices across the commodity portfolio. In addition, we witnessed higher operations costs as a result of significant expansion in manufacturing in the last seven to eight months. Moreover, borrowing from commercial banks to fund temporary operational cash-flow requirements resulted in higher finance costs in the quarter. However, we have noticed stabilizing prices for edible oil and cocoa, a declining trend in coffee and stabilizing to modest increase in pricing of milk,' said Suresh Narayanan, Chairman and Managing Director, Nestlé India. Narayanan further added, ' The Powdered and Liquid Beverages category sustained its position as one of the largest growth drivers with another robust performance this quarter registering strong double-digit growth. This performance builds on a strong foundation following high double-digit growth in the corresponding quarter. NESCAFÉ further solidified its leadership in the coffee category by gaining additional market share. The brand continued to democratize coffee through affordable packs, while also expanding the premium segment with NESCAFÉ Gold and NESCAFÉ Roastery. NESCAFÉ RTD continued to demonstrate strong growth.'
