Nestle India Ltd on Thursday reported a 37.28 per cent year-on-year (YoY) rise in profit after tax at Rs 908.08 crore for the September quarter compared with Rs 661.46 crore in the corresponding quarter last year. Revenue from operations grew 9.45 per cent YoY at Rs 5,036.82 crore for the quarter compared with Rs 4,601.84 crore in the same quarter last year. Nestle India said domestic sales for the quarter increased 10.3 per cent and was broad based, with prudent pricing supported by mix and volume.
The Maggi maker said its e-commerce channel contributed to 6.1 per centof the quarterly sales with continued growth across product groups driven by Quick Commerce. Organized Trade, it said continued to deliver strong double-digit growth. The Out of Home (OOH) channel registered strong double-digit volume led growth. Product transformation led to consistent performance, Nestle India said.
The FMCG major said the uneven rain and rain deficit is expected to impact production of maize, sugar, oilseeds and spices that may have an adverse impact on pricing going ahead. It said coffee prices stayed volatile due to global supply deficit. The weather during the harvest of Indian Robusta crop may impact production. "Upcoming winter weather may impact wheat production. Healthy milk flush is expected in winter which is expected to keep prices stable," it said.
Nestle India 2nd interim dividend, stock split
Nestle India announced a second interim dividend of Rs 140 for the financial year while announcing sub-division or split of shares of face value of Rs 10 each fully paid-up into 10 equity shares of face value of Re 1. The company board declared second interim dividend Rs 140 per equity share for 2023, amounting to Rs 1,349.82 crore, which would be paid on and from November 16. This was in addition to the first interim dividend of Rs 27 per share paid on May 8.
What Nestle India management says
Chairman and Managing Director at Nestlé India, Suresh Narayanan, said, “Domestic sales grew double digit, on account of mix, volume and price. Key brands continued to perform well. We are investing towards building our brand equity and have made strong and significant investments across all product groups. We crossed Rs 5,000 crore turnover, which has been our first in any quarter in the history of the company and a landmark for us."
Narayanan said consumer trends and increasing proclivity towards adoption of brands in small towns and large villages has propelled the growth of the Company. He said his company continue to widen and customize our RURBAN portfolio by introducing products which cater to specific local requirements,"
"The Out-of-Home business continued to deliver double-digit growth with a focus on portfolio transformation, geographical expansion and significant investment in infrastructure. E-Commerce contributed to 6.1 per cent of the quarterly sales with continued growth across channels driven by Quick Commerce. I am happy to note that our D2C platform www.mynestle.in has performed well in Delhi NCR and now we are in the process of expanding it to other cities," he said. Also read: Blue Jet Healthcare IPO to open on Oct 25; check price band, lot size and other details
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