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Business News/ Companies / Company Results/  Nestle Q4: Company enters slump sale agreement with Purina PetCare for Nestle Business Services
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Nestle Q4: Company enters slump sale agreement with Purina PetCare for Nestle Business Services

Nestlé has entered into a slump sale agreement with Purina PetCare India for its Nestlé Business Services Division, effective from July 1, 2024.

Nestle India sells packaged foods and beverages under brands such as Maggi, Milkmaid, Kit-Kat etc.Premium
Nestle India sells packaged foods and beverages under brands such as Maggi, Milkmaid, Kit-Kat etc.

Nestlé, in a move to streamline its operations, has entered into a slump sale agreement for its Nestlé Business Services (NBS) Division with Purina PetCare India, a wholly-owned subsidiary of Nestlé S.A.

The deal, valued at 798 million, is set to be effective from July 1, 2024, subject to customary closing conditions. Notably, the consideration, deemed at an arm's length basis, will be adjusted for the net working capital transferred by Nestlé as of June 30, 2024.

During the decision-making process, only Independent Directors participated in the vote on this agenda item, with Executive Directors recusing themselves, the company said in its release.

Nestle's NBS Division

Established in 2006, NBS started as a Shared Service Centre in India. Over time, it evolved its services, with a particular emphasis on efficiencies and automation. At present, the NBS Division provides captive services to Nestlé across four areas: Order to Cash, Source to Pay, Record to Report, and Hire to Retire.

These services contribute to Nestlé's operational efficiency, cost optimisation, data-driven decision-making, improved customer service, and the ongoing automation of scalable processes throughout the Company's value chain.

Nestle Q4 Results

Nestle India on Wednesday reported a net profit of 655.61 crore for the quarter ended December 2023, registering a growth of 4.4% as compared to 628.06 crore in the same quarter last year.

The company’s revenue in Q4CY24 grew 8% to 4,600.42 crore from 4256.79 crore, year-on-year (YoY). In an exchange filing, the company said that strong growth momentum in e-commerce and out-of-home channels drove an 8.9% increase in domestic sales, which was supported by price and mix growth.

Nestle Dividend Announced

Nestle India on Wednesday declared an interim dividend of 7 per share while announcing its earnings for the quarter ended December 2023. In a regulatory filing, Nestle India said that its board of directors has approved the declaration of a third interim dividend of 7 per equity share of the face value of Re 1 each for the Financial Year 2023-24.

The company has also fixed the Record Date for the dividend as February 15.

“Third Interim Dividend for the Financial Year 2023-24 will be paid on and from 5th March 2024 to those members whose names appear in the Register of Members of the Company and as beneficial owners in the Depositories, as on the Record Date fixed for the purpose i.e., 15th February 2024.

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Published: 07 Feb 2024, 01:17 PM IST
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