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Nestle, a name familiar to Indian households for various reasons, including Maggi, Milkmaid, or Nescafe, presented the results of the third quarter of the financial year. In this blog, let us understand what drove Nestle’s performance this year and what it looks forward to in the final quarter.

Revenue and profit

Nestle India's Q3 results presented a mixed bag, offering both positive and cautionary elements. On the one hand, revenue growth of 8.2% year-on-year to ₹4,505.4 crore surpassed analyst expectations. This growth was driven by continued demand for popular products like Maggi, instant noodles, and milk products, indicating consumer trust and brand loyalty. Additionally, the company declared an interim dividend of ₹7 per share.

The net profit of ₹655.61 crore, while representing a 4.38% increase year-on-year, falling short of analyst estimates hovering around ₹746.8 crore. Nestle attributed this disparity to rising input costs, particularly for raw materials and packaging, and higher marketing expenses incurred during the quarter.

Key observations: beyond the headline numbers

A closer look at the Q3 results reveals several noteworthy observations.

  • Volume growth across categories: Despite margin pressures, volume growth remained positive for key product categories like instant noodles, Maggi, and milk products. This indicates continued consumer demand for Nestle's offerings, highlighting the brand's resilience.
  • Digital sales soar: Recognising the evolving consumer landscape, Nestle witnessed strong growth in online channel sales. This digital focus bodes well for the company's future as it adapts to changing purchasing preferences.
  • Balancing act amidst headwinds: Nestle navigates a dynamic environment marked by inflationary pressures and intense competition within the FMCG sector. Managing costs and maintaining profitability while driving growth will be crucial for the company's success.

Looking ahead: a recipe for future success

As Nestle India charts its course forward, several key factors will influence its performance.

  • Navigating inflationary pressures: Finding ways to mitigate rising input costs while maintaining product affordability will be essential for sustaining profitability.
  • Innovation and brand building: Continued investment in product innovation and brand-building initiatives can help Nestle differentiate itself in a competitive market.
  • Expanding reach and penetration: Exploring new distribution channels and tapping into the vast potential of rural markets could unlock further growth opportunities.


Nestle India's Q3 results offer a nuanced picture, showcasing both progress and challenges. While the company faces headwinds like inflation and competition, its focus on core brands, digitalisation, and rural market expansion presents promising opportunities for future growth. Ultimately, the true test of Nestle's success lies in its ability to navigate these complexities and deliver a recipe for sustainable value for all its stakeholders.

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