Nestle India Results: Net Profit Surges 37% In September Quarter, Firm Announces 1:10 Stock Split

The firm follows the Jan-Dec calendar year and said that it logged a net profit of Rs 908.08 crore in the quarter ended Sep, 2023 against a net profit of Rs 661.46 crore on a year-on-year (YoY) basis.

The FMCG giant’s board approved a stock split in the 1:10 ratio, marking this the first such move by the company in India.

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FMCG major Nestle India reported a 37.28 per cent increase in its net profit on a year-on-year (YoY) basis in its third quarter (Q3) earnings on Thursday. The firm follows the January-December financial year and stated in a regulatory filing that it logged a net profit of Rs 908.08 crore in the quarter ended September in 2023 against a net profit of Rs 661.46 crore in the third quarter of the previous year (2022).

Nestle India logged a 5.92 per cent increase in its total expenses for the reporting quarter at Rs 3,954.49 crore, compared to Rs 3,733.12 crore reported in the corresponding period a year earlier. Domestic sales of the company stood at Rs 4,823.72 crore for the September quarter, up by 10.33 per cent against its year-ago sales of Rs 4,371.99 crore for the same quarter a year ago. 

Elaborating on the results, Suresh Narayanan, chairman and managing director, noted, “I am pleased to share that we have, yet again, delivered consistent performance almost across all major brands. Domestic sales grew double digit, on account of mix, volume, and price. Key brands continued to perform well, led by KITKAT, NESCAFÉ CLASSIC, NESCAFÉ SUNRISE, supported by MUNCH and MILKMAID. We are investing towards building our brand equity and have made strong and significant investments across all product groups. We crossed INR 5,000 crore turnover, which has been our first in any quarter in the history of the Company and a landmark for us.” 

The company posted a growth of 9.45 per cent in it’s revenue from operations at Rs 5,036.82 crore for the reporting period, against Rs 4,601.84 crore logged in the quarter ended September in 2022. While e-commerce contributed to 6.1 per cent of the sales in the quarter with consistent growth across product categories led by quick commerce, out-of-home (OOH) sales logged robust volume-led growth, the firm noted in it’s filing. 

Commenting on the firm’s approach to sustainability, Narayanan said, “We have accelerated our focus on Innovation and Renovation, launching many new products through the year. We are creating a differentiated and diverse food portfolio across brands that promotes millets or ‘shree anna’ as a more sustainable food.”

The FMCG giant’s board approved a stock split in the 1:10 ratio, marking this the first such move by the company in India. The firm added, “The board of directors approved sub-division/ split of each equity share of face value of Rs 10 each, fully paid-up into 10 equity shares of face value of Re 1 each, fully paid-up by alteration of capital clause of the Memorandum of Association of the Company.”

Additionally, Nestle India announced a second interim dividend of Rs 140 per equity share coming up to Rs 1,349.82 crore. This dividend will be distributed on and from November 16, 2023. “This is in addition to the first interim dividend of INR 27/- per equity share paid on 8th May 2023,” the firm stated. 

Giving a commodity outlook, the company said, “Uneven rain and rain deficit is expected to impact production of maize, sugar, oilseeds and spices that may have an adverse impact on pricing. Coffee continues to be volatile because of 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.”