Nestle India Q1 results: Profit jumps 25% to Rs 737 crore, revenue up 21%; highest growth in decade, says FMCG major

Nestle India on Tuesday reported a 24.69 per cent year-on-year (YoY) rise in profit at Rs 736.64 crore for the March quarter compared with Rs 590.77 crore in the corresponding quarter last year. The bottom line beat analyst forecasts of 13-20 per cent growth. Nestle India said it witnessed the highest growth in a quarter in the last 10 years, excluding an exceptional quarter in 2016 that was a one-off due to a low base in 2015. Product groups delivered double digit growth, a notable feature in the past four quarters in a row, Nestle India said.

Revenue from operations grew 20.98 per cent YoY to Rs 4,830.53 crore for the first quarter compared with Rs 3,992.60 crore in the same quarter last year, thanks to a healthy balance of pricing, volume and product mix, the company said in a BSE filing. Sales also beat analyst estimates.

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"We are witnessing early signs of softening of commodities such as edible oils, wheat and packaging materials. However, cost of fresh milk, fuels, and green coffee are expected to remain firm because of continued increase in demand and volatility," the company said in a BSE filing.

Chairman and Managing Director Suresh Narayanan said: "All our product groups delivered double digit growth, a notable feature in these past four quarters in a row. Confectionery led by KITKAT, and MUNCH posted a strong growth, supported by consumer led campaigns, innovation and engagement." he said.

Narayanan said beverages turned in another quarter of robust growth and market share gains led by Nescafe Classic, Nescafe Sunrise and Nescafe Gold.

"Prepared Dishes and Cooking Aids delivered strong growth across all products in its portfolio. One can discern portfolio upgradation happening in this category. Milk products and Nutrition continued its strong performance led by Milkmaid among others," it said.

Narayanan said the company's out-of-home business continued to accelerate rapidly this quarter. Nestle India continued with portfolio transformation, continued expansion, route to market focused on relevant geographies, channel prioritisation and opening of new kiosks in key locations, he said.

"Our strong performance in e-commerce continued with significant growth in quick commerce," Narayanan said.

Nestle India Q1 results highlights

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