Nestle India’s net profits rise by 37% y-o-y to Rs 698.34 crore in June quarter

NEW DELHI: Nestle India’s net profits for the June quarter increased by nearly 37% on a year-on-year basis to Rs 698.34 crore, helped by strong growth across product groups. Total sales grew by 15% y-o-y to Rs 4,619.5 crore during the quarter.

“This is the fifth quarter in a row of double-digit growth across all product groups. Domestic sales growth is broad based and grew by 14.6% on the back of prudent pricing and supported by mix and volume with targeted brand support. Key brands continued to perform well led by KitKat, Nescafe and Maggi among others,” chairman and managing director Suresh Narayanan said in a statement.

The fast moving consumer goods (FMCG) major’s revenue from operations increased to Rs 4,658.53 crore in the April-June period from Rs 4,045.69 crore in the year-ago period.

The firm said that fuel prices have softened in the second quarter. Few commodities such as wheat, edible oils and packaging materials have also been in the lower price range. “In fresh milk, there has been price stability. Robusta prices are elevated and are expected to remain volatile,” Nestle India said.

The milk products and nutrition category, the company said posted double-digit growth despite inflationary pressures while greater penetration of Nescafe products indicates that households are increasingly taking to coffee consumption.

“Our Rurban strategy was helped by increasing distribution footprint with relevant portfolio….we witnessed strong growth across mega cities and metros, robust performance in tier one to six towns and continued strength in rural markets. E-commerce continued to perform strongly and now accounts for almost 6.5% of sales,” Narayanan said.

Nestle India also announced the launch of its 10th factory in Odisha on Thursday.

Share price of Nestle India ended at Rs 22316.30 apiece on the BSE, down 2.14%.

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