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Nestlé India Ltd reported a 2.25% jump in profit to 483.31 crore for the December quarter over the year-ago period, the fast-moving consumer goods company told the exchanges on Tuesday. In the third quarter of FY20 it had reported profit of 472 crore.

However, the profit was below the 563.40 crore estimated by Bloomberg analysts.

Revenue from operations stood at 3,432.58 crore, up 9% compared to the year ago period. Expenses for the quarter were up 8.26% to 2,793 crore.

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“Total sales and domestic sales for the quarter increased by 9.2% and 10.1%, respectively. Domestic sales growth is broad based largely driven by volume and mix. Demand in out-of-home channel further improved in the quarter, but continues to be impacted by covid. Export sales were lower by 7.7% due to lower coffee exports," the company added.

High employee costs partially negated strong gross margins, said Abneesh Roy, executive vice president, Edelweiss Securities. Employee costs were up 25% during Q3. Sales were in line with estimates, but exports disappointed, Roy added.

For the full year, revenue from operations was up 7.9% at 13,350 crore, while profit for the year was up by 5.7% to 2,082.4 crore, the maker of Nescafé coffee and Maggi noodles said. Total sales and domestic sales increased by 8.1% and 8.5%, respectively.

The company ramped up its marketing spends during the December quarter.

“Nearly two thirds of our key brands like Maggi noodles, Kitkat and Nescafé Classic posted double-digit growth last year. This was backed by a step up in marketing spends, especially in the last quarter. Our innovation and renovation pipeline continued to be a thrust area across categories like foods, breakfast cereals and Nestlé Health Sciences. E-commerce continued to surge ahead and now contributes 3.7% of the domestic sales," said Suresh Narayanan, chairman and managing director, Nestlé India.

During the quarter sales through the e-commerce route grew by 111%, contributing nearly 3.7% to overall domestic sales.

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