Nestle India sees export pressure as green coffee headwinds impact overseas sales
By Aditya Bhagchandani Published on April 24, 2025, 12:08 IST
Nestlé India in its Q4 results update has flagged commodity headwinds in green coffee as a key challenge affecting its coffee export performance in the financial year ended March 31, 2025. The company, in its post-results commentary, noted that while overall exports witnessed expansion into new territories such as Maldives and Papua New Guinea, the growth in coffee exports took a hit due to sustained pressure in raw material prices.
According to the company, exports of NESCAFÉ Sunrise to the United States continued, but overall export momentum was weighed down by rising input costs, particularly in green coffee, a vital raw material for the company's coffee portfolio. The impact was more visible in established export markets like North America, where MAGGI noodles also reported a decline.
Nestlé stated that despite these challenges, it remained committed to strengthening its global footprint, introducing new SKUs in the Middle East and South Africa, and adapting its product portfolio to cater to varied consumer preferences.
Meanwhile the company reported a 5.2% year-on-year (YoY) decline in standalone net profit to ₹885.41 crore for the quarter ended March 31, 2025 (Q4FY25), compared to ₹934.17 crore in the same quarter of the previous year. Following the announcement, shares of Nestle India traded 3% lower from their intraday high, last seen at ₹2,446.90 apiece on the NSE.
Q4 FY25 Reuslts Today: Nestle reports 5.22% YoY decline in Net Profit to Rs 885 crore
The company continues to monitor commodity inflation trends closely, especially in the beverage category, where coffee and cocoa remain sensitive to global pricing cycles.
Commenting on the results, Suresh Narayanan, Chairman and Managing Director of Nestlé India, said the company saw strong double-digit growth in Beverages and Confectionery, with three out of four product groups showing healthy momentum. Domestic sales crossed ₹5,235 crore, marking the highest ever in a quarter, led by improving volume growth and resilient demand. Category-wise highlights Powdered and Liquid Beverages emerged as the biggest contributor, with high double-digit growth . NESCAFÉ continued to gain market share, adding 5.1 million new households to the coffee category. NESCAFÉ's Ready-to-Drink cold coffee also expanded in India.
Confectionery recorded high single-digit growth , led by the strong performance of KITKAT , making India the second-largest market for the brand globally.
Prepared Dishes and Cooking Aids , led by MAGGI , returned to volume growth. MAGGI Masala-Ae-Magic also maintained consistent growth, with India remaining its largest market worldwide.
Milk Products and Nutrition saw innovation-led gains, including the launch of CERELAC and CEREGROW variants with no refined sugar .
Petcare , now fully integrated into Nestlé India, posted its highest ever growth , driven by PURINA brands like FELIX, FRISKIES, and PRO PLAN.
The Out-of-Home (OOH) business also surged, now including KITKAT Professional Spread, aimed at chefs and commercial kitchens.
Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
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