The Hindu Business Line : Nestle India net up at Rs 45.42 crore

DESPITE 2003 being a year of global uncertainties and the FMCG sector not in the best of health, plus controversies such as `pesticides' and `infestation in chocolates' impacting the sector, Nestle India Ltd has seen sustained growth and profits.

The company posted a net profit of Rs 45.42 crore for the quarter ended December 31, 2003 compared to Rs 37.67 crore in the same period in the previous year. Total income increased to Rs 571.77 crore in the quarter ended December 2003 from Rs 490.78 crore in the corresponding quarter in the previous year.

For the year ended December 2003, the company posted a net profit of Rs 263.08 crore against Rs 201.52 crore in December 2002. Total income increased to Rs 2,307.6 crore from Rs 2,075.6 crore.

The board of directors at its meeting held on Monday has not recommended any final dividend for 2003 taking into account the two interim dividends of Rs 10 each, aggregating Rs 20 per equity share.

Commenting on the performance during the financial year 2003, Mr Carlo M. Donati, Chairman & Managing Director, stated, "Nestlé India has consistently sustained growth in top line and bottom line during the past few years despite uncertain and difficult market conditions."

The company's net sales for 2003 were up 11.4 per cent compared to 2002. Domestic sales increased 11.7 per cent and exports sales 8.9 per cent. The increase in export sales has been positively influenced by the increase in per unit realisations due to higher green coffee prices, though it has been partly offset by the shift towards bulk packs. Export of instant tea also showed healthy growth. The reported net profit for the full year is higher by 30.5 per cent over the previous year.

Nescafe Instant Coffee showed aggressive growth and Maggi also sustained its growth in instant noodles and soups. As part of the initiatives to further consolidate Maggi's leadership, `Maggi 2-Step Mix' was launched as a ready-to-cook recipe mix in certain test markets.

Nestle Munch, which is the largest selling unit in the wafer segment, continued to gain volumes and the launch of Nestle Chotu Munch at Rs 2 price point was well received. The launch of Fruit 'N Milk (apple) and Nescafe Frappe as a coffee variant in ready-to-drink cartons, Milkmaid Squeezy as a bread or biscuit topping, and the launch of Nestle Mishti Doi further strengthened Nestlé's presence in the market.

During the year, the company launched the Nestle Developmental Nutrition Plan and Cerelac 123. Cerelac 123 is graded to meet the right physical and nutritional needs of infants during the three stages in their weaning, as identified in the plan. The company also leveraged this technology and knowledge to reinvent Nestogen, making it easier to digest the fat content and improve absorption.