Nestle India December quarter profit up 4.94% to Rs 688 crore, sales up 3.9% to Rs 4,762.13 crore

New Delhi: FMCG major Nestle India Ltd on Friday reported a 4.94 per cent increase in net profit at Rs 688.01 crore for the December quarter, that was marked with food inflation, and moderation in urban consumption.

The company had posted a net profit of Rs 655.61 crore in the October-December period a year ago, according to a regulatory filing from Nestle India.

Nestle India's revenue from the sale of products was up 3.89 per cent to Rs 4,762.13 crore in the December quarter. It was at Rs 4,583.63 crore in the corresponding period of the last fiscal year.

"This quarter, 3 out of 4 product groups, delivered healthy growth led by a combination of pricing and volume," Chairman and Managing Director Suresh Narayanan said.

Commodity prices for its key commodity inputs such as coffee, cocoa and cereals and grains continue to be firm, though prices for edible oil, milk and packaging are stabilised now, he said.

Despite the factors, Nestle India's "Key brands continue to perform and this augurs well in a challenging environment," said Narayanan, the outgoing CMD of the company.

In the December quarter, total expenses of Nestle India were up 6.18 per cent to Rs 3,861.91 crore.

Nestle India's domestic sales were up 3.23 per cent to Rs 4,566.05 crore, as against Rs 4,421.79 crore in the corresponding October-December period.

"Our powdered and liquid beverages business was the largest growth contributor this quarter, with high double-digit growth. Beverages retail achieved a significant milestone by surpassing Rs 2,000 crore business in the last twelve months," said Narayanan.

Its coffee brand Nescafe strengthened its leadership position by gaining market share and bringing 3.7 million households into the coffee category.

Nestle confectionery business also has a high single-digit growth led by its chocolate-covered wafer bar Kit Kat, which delivered a double-digit growth.

"Prepared Dishes and Cooking Aids posted high single-digit growth led by Maggi noodles, which returned to credible volume growth," he said.

While, its petcare business Purina witnessed highest growth this quarter since its integration into the Nestlé India business in 2022.

Its revenue from exports was up 21.15 per cent to Rs 196.08 crore in the December quarter, led by nutrition, Instant Tea and confectionery while the coffee export continued to sustain double-digit growth.

"Nestle Munch, Nescafé Sunrise, Maggi Masala-Ae-Magic were extended to new markets in the United States and the United Arab Emirates," the company said in its earnings statement.

Nestle India's revenue from operations, which includes other operating revenue, was at Rs 4,779.73 crore, up 3.89 per cent. It was at 4,600.42 crore in the December quarter of the previous fiscal.

Total Income of Nestle India, which owns popular brands such as Maggi, Nescafe and Kit Kat was at Rs 4,784.17 crore, up 3.31 per cent.

Nestle India, which is working on RUrban strategy to enhance its distribution reach, had increased the number of availability at outlets by almost 5 per cent in the last 12 month. This is "one of the most impressive expansions" amongst Food & Beverage companies, it added.

Though Nestle India did not share numbers, it said it has accelerated in its e-commerce business aided by quick commerce, consumer acquisition, festival activation and premiumisation.

Updating its investment, Nestle India said its manufacturing capacity will witness a significant jump with the commissioning of the third confectionery unit in the Sanand factory to manufacture Kit Kat. This is a part of Rs 5,800 crore capital expenditure committed by its parent Swiss entity Nestle SA between 2020-2025 in India.

Meanwhile, in a separate filing Nestle India informed its board has approved a second interim dividend of Rs 14.25 per equity share of the face value of Re 1 for the financial year 2024-25.

Shares of Nestle India were trading at Rs 2,303.30 apiece in afternoon trade on BSE, up 3.81 per cent from its previous close.