Nestlé India Q1 profit falls 12% on higher input, finance costs

Yeni Delhi: Nestlé India Ltd’s wife, Maggi noodles and Kitkat chocolate for the producer of input cost pressure and higher financing costs fell in June quarter.

Packaged Food Company’s Post Tax profit decreased by 11.7% annually LaAccording to exchange statements on Thursday, Crore in the first quarter of 659.2 FY26.

Total sales increased by 5.8% annually La5,074 Crore in the quarter. The expenses of the company increased by 9.25%due to high finance and interest costs for the benefits of employees.

Nestlé India President and General Manager Surresh Naradanan, “The quarter was affected by high consumption prices during the commodity portfolio. In addition, we witnessed higher operation costs as a result of an important expansion of production within the last seven to eight months.” He said. “In addition, borrowing from commercial banks to finance temporary operational cash flow requirements resulted in higher financing costs in the quarter.”

However, Naradanan said, “We noticed stabilizing prices for edible oil and cocoa, a stabilizing tendency to a modest increase in the pricing of coffee and milk.”

EBITDA La1.101.0 Crore was fixed annually and 6% of estimates La1.173 Crore directed with gross margin compression and higher operating expenses. FAVÖK, interest, tax, depreciation and pre -fire brigade gains are a measure of operational profitability.

Balanced growth

The company achieved balanced growth in three of the four product group categories. Coffee, noodles, chocolate, packaged milk, yogurt and pet food, selling Nestlé, coffee and cocoa prices rose in the last few quarters as high input costs.

However, since the new Vietnamese crop looks normal, coffee prices are expected to be attached to the current low levels. Cocoa and edible oil prices have been stabilized and are connected to the range. The company is expected to decrease at the beginning of a suitable monsoon and flush season.

Analysts said Nestlé’s volume growth was “modest ve and that the company missed margin expectations due to input cost pressure.

Brokerage Equirus Research said in a note, “Nestlé’s high -level momentum remains silent for the fifth consecutive quarter, which is affected by a wider slowdown of a wider urban demand. Commodity cost trends require close monitoring closely. ”

Nestlé shares are 5.41% closed LaCompared to 2,320.15 at BSE on Thursday, a 0.66% decrease in benchmark Sensex.

Naradanan, prepared food and cooking aid category returned to volume growth and Maggi noodles have recorded double -digit increase, he said. The confectionery category has received high -digit growth directed with the underlying volume growth.

The dairy category of dairy products and nutrition reported a mixed performance, while some segments showed growth, while several recorded a quiet performance.

E-commerce continued its growth momentum and contributed to 12.5% of domestic sales directed by fast trade and new launch.