Nestle India Results: Net Profit Dips 1.25 Per Cent To Rs 594 Cr; Net Sales Up 9.74 Per Cent
Nestle India's board has decided to give an interim dividend of Rs 25 per equity share having a face value of Rs 10 for 2022
New Delhi: Nestle India on Thursday clocked a 1.25 per cent year-on-year (YoY) decline in its net profit to Rs 594.71 crore for the quarter ended March. The company has attributed the dip mainly because of rising input costs.
In a filing on the BSE, the FMCG firm, which follows January-December accounting year, said that it had reported a profit of Rs 602.25 crore in the same period a year ago.
Nestle said its net sales rose 9.74 per cent to Rs 3,950.90 crore during the quarter against Rs 3,600.20 crore in the corresponding period last financial year.
The company's board has decided to give an interim dividend of Rs 25 per equity share having a face value of Rs 10 for 2022.
According to a report by PTI, Nestle India’s Chairman and Managing Director (CMD) Suresh Narayanan said, “As highlighted in previous quarters, cost of key raw and packaging materials are witnessing 10-year highs, and costs continued to surge this quarter, which has impacted profit from operations. Continued inflation is likely to be a key factor in the short to medium term,” he said, while adding, “We are confident of facing this turbulence with strategies of scale, efficiencies, mix and pricing all of which we will deploy judiciously.”
Total expenses in the January-March quarter rose 12.98 per cent to Rs 3,195.90 crore, compared to Rs 2,828.61 crore a year ago.
As far as Nestle's domestic sales are concerned, the numbers jumped 10.23 per cent to Rs 3,794.26 crore from Rs 3,442.03 crore in the January-March quarter in the previous year. However, exports have gone down marginally by 0.96 per cent at Rs 156.64 crore against Rs 158.17 crore in the year-ago quarter.
“Domestic sales growth is broad-based and largely driven by volume & mix. Export sales were lower by one per cent largely due to change in product mix,” Nestle said in the statement.
Its CMD said, “This quarter, we have delivered double-digit domestic sales, driven by volume and mix, which once again demonstrates the strength of our brands, consumer resonance and the resilience of the Nestle India team and our partners.”
Nestle's key brands -- Maggi, KitKat, Nestle Munch, Nescafe Classic, and Sunrise -- continue to perform well, posting creditable double-digit growth in this quarter, Narayanan added.
On Thursday, Nestle India shares were trading at Rs 18,293 on the BSE at 1 pm, down 0.11 per cent.
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