New Delhi: Nestlé India takes the next leap with a strong Q1 and a first ever Quarter to cross Rs1000 crore. Net sales went up by Rs1090.9 crore, up 26.4% and net profit zoomed to Rs160.2 crores, up by 47.7% .
Meanwhile net domestic sales were seen at Rs1003.9 crore, up 29.2%. Backing this were export sales at at Rs87.1 crore. This was negatively impacted due to lower exports of beverages and appreciation of the Rupee compared to the same period last year.
EBIT margin improved to 20.9% due to economies of scale, improved sales channel mix and an ongoing strategic transformation process that allowed business to mitigate higher raw materials costs which continue to be at high levels and pose a big challenge.
Reported net profit for the quarter grew by 47.7%. This was positively influenced by a lower Income Tax Provision due to accrual of tax holiday claim arising out of Pantnagar factory operations for the full fiscal year ending 31.3.2008. However, factoring tax benefit of this quarter, net profit grew by 38.0% resulting in net margin of 13.6%.
Board of Directors declared on 17April, 2008, an interim dividend for 2008 of Rs8.50 per equity share (nominal value Rs10 per equity share), amounting to Rs81.95 crore, which will be paid 9May, 2008 onwards.
According to Martial Rolland, CMD, Nestlé India, “The economic environment continues to provide support to the business. Whilst there have been recent concerns about slowdown in the economy, there is a moderation expected in the pace of growth. Commodity prices remain at high levels and pose a strong challenge as do white collar and related costs.”