MUMBAI: Nestle India posted a 27% year-on-year rise in net profit to Rs 934 crore in the March quarter. Total sales increased by 9.3% y-o-y to Rs 5,254 crore, helped by robust growth across its product portfolio, the company said on Thursday. “I am pleased to share that we have delivered double-digit growth, despite challenges posed by rising food inflation and volatile commodity prices.We have witnessed a strong growth momentum across our product portfolio led by a combination of pricing and mix,” Suresh Narayanan, chairman and managing director at Nestle India.
Nestle, however, flagged high commodity prices, particularly for coffee and cocoa which have hit all time high prices. “Cereals and grains are going through a structural cost increase backed by MSP. Milk prices are expected to rise on account of expected harsh summer,” the firm said. Within the company’s product basket, confectionary delivered strong performance led by Kitkat which now counts India as its second largest market globally. Nescafe continued to aid penetration of the firm’s beverage portfolio while milk products and nutrition segment saw strong growth despite inflationary pressures, the Gurgaon-headquartered fast moving consumer goods (FMCG) major said. India emerged as the largest market worldwide for the brand’s popular offering Maggi, the company said.
Nestle’s results should bring some cheer for the street after India’s largest consumer goods company Hindustan Unilever (HUL) reported decline in net profit for the first time since Covid-impacted March 2020 quarter amid subdued rural demand. Analysts said that semi-urban and rural sales account for under one fourth of the Nestle’s total turnover.
The company also announced the entry of premium brand Nespresso coffees and machines in India with the launch slated to happen by the end of 2024. The first Nespresso boutique is scheduled to open in New Delhi before expanding to other key cities.
The stock price of Nestle India on Thursday ended at Rs 2,562.7 apiece on the BSE, up 2.39%.
Nestle, however, flagged high commodity prices, particularly for coffee and cocoa which have hit all time high prices. “Cereals and grains are going through a structural cost increase backed by MSP. Milk prices are expected to rise on account of expected harsh summer,” the firm said. Within the company’s product basket, confectionary delivered strong performance led by Kitkat which now counts India as its second largest market globally. Nescafe continued to aid penetration of the firm’s beverage portfolio while milk products and nutrition segment saw strong growth despite inflationary pressures, the Gurgaon-headquartered fast moving consumer goods (FMCG) major said. India emerged as the largest market worldwide for the brand’s popular offering Maggi, the company said.
Nestle’s results should bring some cheer for the street after India’s largest consumer goods company Hindustan Unilever (HUL) reported decline in net profit for the first time since Covid-impacted March 2020 quarter amid subdued rural demand. Analysts said that semi-urban and rural sales account for under one fourth of the Nestle’s total turnover.
The company also announced the entry of premium brand Nespresso coffees and machines in India with the launch slated to happen by the end of 2024. The first Nespresso boutique is scheduled to open in New Delhi before expanding to other key cities.
The stock price of Nestle India on Thursday ended at Rs 2,562.7 apiece on the BSE, up 2.39%.
