Nestlé India on Thursday reported that its cold coffee products are witnessing a significant surge in demand, particularly driven by Gen Z and millennial consumers, helping the company register high double-digit growth in its beverages segment for the last quarter of financial year 2024.
Powdered and Liquid Beverages emerged as the largest growth contributor for the year, the company said in its earnings statement.
Nescafé, the company's flagship coffee brand, further strengthened its leadership position by gaining market share and bringing more than 5.1 million households into the coffee category.
“The Nescafé Ready-to-Drink cold coffee range, one of the fastest growing segments globally, expanded its new range to India this year,” the company noted.
Nestlé credited the rise in cold coffee consumption among younger consumers for creating entirely new coffee-drinking occasions.
Commenting on the performance, Suresh Narayanan, Chairman and Managing Director of Nestlé India, said: “I am pleased to report that this quarter we witnessed double-digit growth in Beverages and Confectionery, with 3 out of 4 product groups delivering healthy growth. Our domestic sales crossed INR 5,235 crore mark, the highest ever in any quarter supported by improving volume growth.”
The FMCG giant reported a 5.2% year-on-year decline in standalone net profit to ₹885 crore for the quarter ended March 2025, even as revenue from operations rose 4.5% to ₹5,504 crore. Both figures slightly exceeded market expectations.
Total and domestic sales for the March quarter grew by 3.7% and 4.2%, respectively. The company noted that domestic growth was broad-based across product categories.
Among segments, powdered and liquid beverages were the top growth drivers for FY25, delivering high double-digit growth. The confectionery category, led by KitKat—for which India is the second-largest market globally—grew at a high single-digit rate in both value and volume.
Prepared dishes and cooking aids saw mid-single-digit growth, with Maggi making a return to volume growth. The Maggi Masala-ae-Magic line also continued its strong performance. India remains the largest market for Maggi worldwide.
The petcare division delivered its highest-ever growth since being integrated into Nestlé India, clocking high double-digit gains. Similarly, the Out-of-Home (OOH) business posted robust double-digit growth, emerging as one of the company’s fastest-growing verticals.
E-commerce, particularly through the surge in quick commerce platforms, contributed 8.5% to domestic sales in FY25.
Commenting on the business environment, Nestlé India flagged firm prices for coffee and stable edible oil prices, while cocoa prices, despite a correction, remained elevated. Milk prices have also firmed up cyclically with the onset of summer.
On the investment front, the company reaffirmed its ₹6,500 crore commitment for 2020–2025 aimed at building capacity and developing new capabilities. As part of this, a new facility in Odisha—Nestlé’s 10th in India—is being established with an initial investment of ₹900 crore in phase one to manufacture products from the prepared dishes and cooking aids portfolio.
Nestlé India's shares were down 2% at ₹2,383 on the BSE following the earnings announcement.
Powdered and Liquid Beverages emerged as the largest growth contributor for the year, the company said in its earnings statement.
Nescafé, the company's flagship coffee brand, further strengthened its leadership position by gaining market share and bringing more than 5.1 million households into the coffee category.
“The Nescafé Ready-to-Drink cold coffee range, one of the fastest growing segments globally, expanded its new range to India this year,” the company noted.
Nestlé credited the rise in cold coffee consumption among younger consumers for creating entirely new coffee-drinking occasions.
Commenting on the performance, Suresh Narayanan, Chairman and Managing Director of Nestlé India, said: “I am pleased to report that this quarter we witnessed double-digit growth in Beverages and Confectionery, with 3 out of 4 product groups delivering healthy growth. Our domestic sales crossed INR 5,235 crore mark, the highest ever in any quarter supported by improving volume growth.”
The FMCG giant reported a 5.2% year-on-year decline in standalone net profit to ₹885 crore for the quarter ended March 2025, even as revenue from operations rose 4.5% to ₹5,504 crore. Both figures slightly exceeded market expectations.
Total and domestic sales for the March quarter grew by 3.7% and 4.2%, respectively. The company noted that domestic growth was broad-based across product categories.
Among segments, powdered and liquid beverages were the top growth drivers for FY25, delivering high double-digit growth. The confectionery category, led by KitKat—for which India is the second-largest market globally—grew at a high single-digit rate in both value and volume.
Prepared dishes and cooking aids saw mid-single-digit growth, with Maggi making a return to volume growth. The Maggi Masala-ae-Magic line also continued its strong performance. India remains the largest market for Maggi worldwide.
The petcare division delivered its highest-ever growth since being integrated into Nestlé India, clocking high double-digit gains. Similarly, the Out-of-Home (OOH) business posted robust double-digit growth, emerging as one of the company’s fastest-growing verticals.
E-commerce, particularly through the surge in quick commerce platforms, contributed 8.5% to domestic sales in FY25.
Commenting on the business environment, Nestlé India flagged firm prices for coffee and stable edible oil prices, while cocoa prices, despite a correction, remained elevated. Milk prices have also firmed up cyclically with the onset of summer.
On the investment front, the company reaffirmed its ₹6,500 crore commitment for 2020–2025 aimed at building capacity and developing new capabilities. As part of this, a new facility in Odisha—Nestlé’s 10th in India—is being established with an initial investment of ₹900 crore in phase one to manufacture products from the prepared dishes and cooking aids portfolio.
Nestlé India's shares were down 2% at ₹2,383 on the BSE following the earnings announcement.
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