Nestle India Q2 Results: 37 Per Cent Jump In Net Profit, Revenue Increases By 15 Per Cent

Nestle reported a 15 per cent growth in overall sales, and domestic sales grew by 14.6 per cent, on a YoY basis

Nestle also announced its tenth factory in India to be made in Odisha, as part of its “Make in India” initiative ( Image Source :Getty )

Nestle India Ltd posted an almost 37 per cent increase in its net profit after tax on a year-on-year (YoY) basis in its second quarter (Q2) earnings on Thursday. It logged a net profit of Rs 698.3 crores for the June quarter ended 2023 against a net profit of Rs 510.2 crores in the same quarter last year. 

In its board meeting, Nestle India approved the company's fiscal cycle to be changed from the current January-December cycle to the April 1 to March 31 cycle next year onwards, subject to the necessary approvals. It said, “Accordingly, the current Financial Year of the Company shall be extended upto 31st March 2024 covering a period of 15 months commencing from 1st January 2023 to 31st March 2024 and subsequent Financial Years of the Company would begin from 1st April every year and end with 31st March of the subsequent year.”

The revenue generated from operations increased by 15 per cent on a YoY basis from Rs 4,045.7 crore to Rs 4658.5 crore in the June 2023 quarter. Nestle reported a 15 per cent growth in overall sales, and domestic sales grew by 14.6 per cent, on a YoY basis. 

Suresh Narayanan, Chairman, and Managing Director of Nestlé India, said, “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. The Out-of-Home business continued to deliver strong growth this quarter.” 

Nestle also announced its tenth factory in India to be made in Odisha, as part of its “Make in India” initiative through its regulatory press release. 

The FMCG giant said it witnessed strong growth across “Megacities and Metros” and its “RURBAN” strategy helped achieve higher penetration across rural markets. Major brands of the company continued to perform well, led by KITKAT, NESCAFÉ and MAGGI, among others. Commenting on the performance in the E-Commerce segment, Narayanan said, “E-Commerce continued to perform strongly and now accounts for almost 6.5% of sales.”

Regarding the outlook for the company, Narayanan noted that commodities like edible oils, wheat, and packaging materials have been in the lower price range. He said, “A reversal of price trend is noted in fuels with prices softening in second quarter after reaching higher level towards the end of quarter one. In fresh milk, there has been price stability. Robusta prices are elevated and are expected to remain volatile.”