Nestle India Declares ₹2.75 Interim Dividend for FY25; Shareholders Approve Ongoing Royalty Fee to Parent

Nestle India has announced an interim dividend of ₹2.75 per share for the financial year 2024-25. This was declared by the company’s board on Monday, and it applies to all the issued, subscribed, and paid-up share capital. The interim dividend will be paid from August 6, 2024, along with the final dividend for the 15-month financial year that ended in March 2024.

The record date for the dividend is July 16, meaning shareholders listed on that date will receive the payment. Typically, a company’s shares trade ex-dividend on or before the record date, which means the stock does not include the value of the upcoming dividend payment on that day.

Additionally, Nestle India’s shareholders have approved the continuation of a 4.5% royalty payment to its Swiss parent company, Nestle. About 99% of shareholders voted in favor of maintaining the current royalty fee. Previously, a proposal to increase the royalty fee was rejected by 70.8% of public shareholders, who are not allowed to vote on related party transactions under Indian regulations.

For the March quarter, Nestle India reported a net profit of ₹934 crore, a 27% increase year-on-year. Revenue from operations also grew by 9% to ₹5,268 crore. On Monday, Nestle India’s shares closed 1% higher at ₹2,600 on the NSE.