FMCG (Fast-moving consumer goods) major Nestle India Ltd today reported a 24.69 percent increase in its net profit to Rs 736.64 crore for the first quarter, aided by robust volume growth and pricing.
The company, which follows its January-December financial year, had posted a net profit of Rs 590.77 crore in the same period a year ago, Nestle India said in a filing.
Nestle India’s net sales increased by 20.43 percent during the reporting period to Rs 4,808.40 crore from Rs 3,962.84 crore in the corresponding period of the previous financial year, the company said.
“We continued to deliver robust revenue growth this quarter, which is broad-based with a healthy balance between pricing, volume and mix,” said Nestlé. Said India’s Chairman and Chief Executive Officer Suresh Narayanan.
This is the highest growth for Nestle India in any quarter in the past 10 years, except for the 2016 quarters, which had a low base in 2015 due to the Maggi crisis.
“All our product groups showed double-digit growth, a remarkable feature for the past four quarters in a row,” he said.
During the March quarter, Nestle India’s revenue increased by 20.98 percent to Rs 4,830.53 crore.
Nestle India’s total expenditure in the January-March quarter was Rs 3,873.76 crore, an increase of 20.61 percent, compared to Rs 3,211.78 crore in the corresponding period.
In the March quarter, Nestle India’s domestic sales rose 21.18 percent to Rs 4,612.73 crore from Rs 3,806.20 crore in January-March 2022.
The Dairy Products and Food divisions posted strong double-digit growth, despite the pressure on the commodities market.
While his coffee company Nescafe recorded its highest market share ever in the first quarter.
“Confectionery led by KitKat and Munch posted strong growth supported by consumer-led campaigns, innovation and engagement. Beverages experienced another quarter of robust growth and market share gains led by Nescafe Classic, Nescafe Sunrise and Nescafe GOLD,” said Narayanan .
Segments such as ready meals and cooking aids also drove strong growth for all products in its portfolio.
The newly acquired Pet Food business also continued to build on momentum, launching new products across its cat portfolio, it added.
Nestle India’s Out-of-Home business continued to grow rapidly during the quarter.
The company also reported strong performance in the e-com segment with significant growth in fast commerce.
“Our strong performance in e-commerce continued with significant growth in rapid commerce. We accelerated our continued growth journey in RURBAN,” it said.
Rurban refers to the process of increasing presence of greenery and/or agriculture in villages and towns: a ruralization of the city.
It had strong momentum in metro and megacities. Rural growth was also strong, thanks to volume.
Exports rose 24.91 percent to Rs 195.67 crore from Rs 156.64 crore in the corresponding quarter.
This “strong double-digit growth” was led by its product portfolio in global markets through both mainstream and ethnic channels, Nestle India said.
On the outlook, the company said it is witnessing “early signs of softening” from commodities such as edible oils, wheat and packaging materials.
“However, the cost of fresh milk, fuels and green coffee is expected to remain high due to the continued increase in demand and volatility,” said Nestle India.
The board of directors of Nestle India earlier this month announced an interim dividend of Rs 27 per share share at par value of Rs 10 per share share for 2023.
Nestle India has also notified that Matthias Christoph Lohner, Executive Director-Technical, is resigning with effect from 30 June 2023 as he takes up a new assignment with a Nestle affiliate.
Satish Srinivasan, currently Head of Operations – Dairy Strategic Business Unit of Nestle, Switzerland, has been nominated to succeed Lohner effective July 1, 2023, subject to approval.
Shares of Nestle India Ltd traded at Rs 20,686.60 on BSE on Tuesday afternoon, up 0.10 percent from the previous close.
(Except for the headline, this story has not been edited by DailyExpertNews staff and is being published from a syndicated feed.)