NESTLEIND

Recent Major Development: 1:1 Bonus Share Issue First in nearly 30 years: Nestle India's board, on June 26, 2025, approved a 1:1 bonus equity share issue. This is the company's first bonus issue since 1996. Shareholder Benefit: This means shareholders will receive one additional equity share (face value ₹1 each) for every one share they hold. The record date for determining eligibility will be announced in due course, and the bonus shares are expected to be credited by August 25, 2025. Rationale: The company stated this decision is a gesture of appreciation for consistent shareholder support and is likely to improve the liquidity of shares and broaden the shareholder base. It follows a recent 10:1 stock split in 2024 aimed at making shares more affordable for retail investors. Financial Performance & Outlook: Q4 FY25 Results (March 2025 quarter): Consolidated Net Profit: ₹873.46 crore (6.5% decline YoY) Revenue from Product Sales: ₹5,447.64 crore (up from ₹5,254.43 crore YoY) The decline in net profit was attributed to food inflation and reduced urban consumption affecting the FMCG sector. FY25 Annual Performance (Year ended March 31, 2025): Total Sales: ₹20,077.5 crore Profit from Operations: 21.5% of Sales Net Profit: ₹3,314.5 crore Strong Cash Generated from Operations: ₹2,936.3 crore Upcoming Q1 FY26 Results: Nestle India is scheduled to announce its Q1 FY26 (April-June 2025) results on July 24, 2025. This will be a key event to watch for fresh insights into their performance in the current fiscal year. Commodity Outlook: Outgoing CMD Suresh Narayanan noted that commodity inflation, which impacted volume growth, is coming down as prices stabilize. However, coffee and cocoa prices remain at "decadal highs." Operational Highlights: Domestic Sales Growth: Broad-based growth, driven by organized trade (store expansion and in-store activations) and e-commerce (especially quick commerce), which contributed 8.5% to domestic sales in FY25.