New Delhi: Nestle India Ltd, the local arm of the Swiss food company, on Friday reported a 6.7% growth in profit for the quarter ended 31 March 2017, backed by higher sales in the domestic market.
Profit for the period stood at Rs306.76 crore as compared with Rs287.32 crore reported in the year-ago quarter. Sales from domestic market increased by 9.7% during the January-March quarter while total sales rose by 9.1% to Rs2,575.74 crore as compared with Rs2,360.80 crore in the year-ago quarter.
Higher growth in domestic sales was “mainly due to increase in volumes across product groups, including rebuild of Maggi” instant noodles and marginally better realizations, the company said in a statement. Growth in sales from exports was at 0.6% as sales declined in Nepal and Bhutan, it added.
“I am happy with the increased volume-based growth, across categories, during the first quarter of 2017. Innovation and renovation, as also volume-based growth, are core business strategies outlined by Nestlé India almost 18 months back and I am pleased that this strategy is now playing an important role,” Nestle India chairman and managing director Suresh Narayanan said in a statement.
The Swiss packaged food company, Narayanan added, will continue to focus on nutrition, food quality and safety. “We will leverage our expertise and strengths in science-based nutrition and explore the areas of micronutrient fortification for our mass consumption products,” he said.
During the quarter, Nestle India’s total expenses increased by 12.8% due to increase in material costs for products such as milk, higher energy cost and increase in cost of distribution because of steep rise in fuel prices. The company has also spent more money during the quarter in brand building and demand generation, it said in a disclosure to the bourses.
Nestle India’s shares closed at Rs6,819.55 per share, down 0.48%, on the BSE, on a day the benchmark Sensex ended 0.21% down at 30,188.15 points. The results were announced after close of trading.