FMCG major Nestle India Ltd on Tuesday reported an increase of 24.69 per cent in its net profit at Rs 736.64 crore for the first quarter, helped by robust volume growth and pricing.
Shares of Nestle India Ltd were trading at Rs 20,770.70 apiece on BSE in the afternoon on Tuesday, up 0.51 per cent from the previous close
FMCG major Nestle India Ltd on Tuesday reported an increase of 24.69 per cent in its net profit at Rs 736.64 crore for the first quarter, helped by robust volume growth and pricing.
The company, which follows the 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 regulatory filing.
Nestle India's net sales rose 20.43 per cent to Rs 4,808.40 crore during the period under review, as against Rs 3,962.84 crore in the corresponding period last fiscal, the company said.
"We have continued to deliver robust sales growth this quarter, which is broad-based with a healthy balance of pricing, volume, and mix," Nestlé India Chairman and Managing Director Suresh Narayanan said.
This is the highest growth for Nestle India in any quarter in the last 10 years, except the quarters of 2016 which was off a low base in 2015 due to the Maggi crisis.
"All our product groups delivered double-digit growth, a notable feature in these past four quarters in a row," he said.
During the March quarter, Nestle India's revenue from operations was up 20.98 per cent to Rs 4,830.53 crore.
Nestle India's total expenses in the January-March quarter were at Rs 3,873.76 crore, up 20.61 per cent, as against Rs 3,211.78 crore in the corresponding period.
In the March quarter, Nestle India's domestic sales were up 21.18 per cent to Rs 4,612.73 crore, as against Rs 3,806.20 crore in the January-March of 2022.
It's Milk Products and Nutrition registered strong double-digit growth, despite commodity pressures. While its coffee business Nescafe recorded its highest-ever market share in Q1.
"Confectionery led by KitKat, and Munch posted strong growth, supported by consumer-led campaigns, innovation and engagement. Beverages turned in another quarter of robust growth and market share gains led by Nescafe Classic, Nescafe Sunrise, and Nescafe GOLD," said Narayanan.
Segments such as prepared Dishes and Cooking Aids also delivered strong growth across all products in its portfolio.
Its newly acquired Pet Food business also continued to build on its momentum and launched new products within its cat portfolio, it added.
Nestle India's Out-of-Home business continued to accelerate rapidly during the quarter.
The company has also reported a strong performance in the e-com segment with significant growth in quick commerce.
"Our strong performance in e-Commerce continued with significant growth in quick commerce. We accelerated our sustained growth journey in RURBAN," it said.
Rurban refers to the process of increasing the presence of green space and or agriculture in towns and cities: a ruralisation of the urban.
It had strong momentum in metro and megacities. Rural growth was also strong, being volume-led.
Its exports were up 24.91 per cent to Rs 195.67 crore, as against Rs 156.64 crore in the corresponding quarter.
This "Strong double-digit growth" was led by product portfolio in global markets through both mainstream and ethnic channels, said Nestle India.
On the outlook, the company said it is witnessing "early signs of softening" of commodities such as edible oils, wheat and packaging materials.
"However, the cost of fresh milk, fuels, and green coffee are expected to remain firm because of continued increase in demand and volatility," said Nestle India.
The Board of Nestle India has earlier this month declared an interim dividend of Rs 27 per equity share on the Face value of Rs 10 per equity share, for 2023.
Nestle India also informed that Matthias Christoph Lohner, Executive Director- Technical, is demitting from June 30, 2023 as he will be taking 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, from July 1, 2023, which is subject to approvals.
Share of Nestle India Ltd was trading at Rs 20,686.60 on BSE in the afternoon on Tuesday, up 0.10 per cent from the previous close.