Nestle India profit jumps 50% in June quarter on lower input cost
Nestle India’s June-quarter net profit rises to Rs 395.03 crore as against Rs 263.43 crore in the year-ago quarter
New Delhi: Nestle India Ltd, the local entity of Swiss packaged food maker Nestle SA, on Friday reported a 50% jump in its net profit for the quarter ended 30 June, backed by lower cost of raw materials. Net profit for the June quarter stood at Rs 395.03 crore as against Rs 263.43 crore in the year-ago quarter. Nestle India follows a January-December year for accounting.
“The market momentum continued to be favorable and I am pleased that we have sustained our broad based volume growth across categories. There is an improvement in margins due to favorable cost of commodities and cost efficiency programs. However, we are now witnessing headwinds in commodity prices,” Suresh Narayanan, chairman and managing director, Nestlé India, said in a statement.
Revenue from operations grew by 8.6% during the quarter, helped by volume growth across categories, to Rs 2,698.40 crore from Rs 2,484.73 crore in the same quarter last year. Its revenue from domestic market grew by 8.5% and exports by 8%% during the quarter under review.
“The growth rates are adversely impacted due to lower reported sales by the change in structure of indirect taxes and reduction in realisations to pass on the GST (Goods and Services Tax) benefits. On a comparable basis, domestic sales growth is ‘estimated’ at 14.5% supported by increase in volumes on a base impacted by softer trading ahead of the rollout of GST,” the company said in a statement.
According to Nestle India, its chocolate brand KitKat, instant coffee brand Nescafé and instant noodles brand Maggi continued to grow strongly during the period under review. The local unit of the Swiss packaged food company has also entered the breakfast cereal market with Nesplus and canned beverages with Nescafé ready-to-drink offerings during the immediate past quarter to boost presence in growing health and nutrition space.
“We are committed to a healthier future and are continuing to enhance the nutrition profile of our products by adding ingredients like whole grains, vegetables and micronutrients and have been reducing public health sensitive nutrients. We have also taken a pledge and announced our roadmap for reduction of sodium, sugar and fat in relevant categories. We seek to make our portfolio tasty and yet more nutritious for our consumers,” the company said.
At 3pm, Nestle India shares were trading 4.54% down at Rs 10,267 apiece on BSE, while benchmark Sensex rose 1.02% to 37,545.50 points.
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