The Hindu Business Line : Nestle full year net down 4.24 pc at Rs 252 cr

NESTLE India on Monday declared 4.24 per cent lower net profit at Rs 252 crore for the 12 months ended December 31, 2004 on 4.1 per cent higher net sales at Rs 2,227.58 crore.

The board of directors has also recommended a special dividend of Rs 4.50 per equity share, amounting to almost Rs 44 crore, mainly out of undistributed profits of the previous financial years. This is in addition to the two interim dividends of Rs 10 each, aggregating Rs 20 per equity share (amounting to Rs 192.83 crore), declared and paid during 2004.

During the quarter ended December 31, 2004, the net sales rose 7.8 per cent to Rs 571.98 crore whereas net profit soared 68.4 per cent to Rs 76.5 crore, mainly due to certain non-recurring exceptional operating charges in the last quarter of 2003, easing of some commodity prices in the last quarter of 2004 and improved control over costs.

Giving an overview of the business it operates in, Nestle India said in a statement that for the past few years, consumer spending on FMCG-like food products has been somewhat depressed and that 2004 was "challenging".

"There has been a shift in consumer spending towards asset building and non-food related lifestyle changes, driven by low-cost credit available widely to consumers and diverting some consumer demand from FMCG products. Hence, we focused on maintaining market shares, improving organisational structure, improving penetration into newer territories and controlling costs," said the Chairman and Managing Director, Mr Martial Rolland.

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Nestle full year net down 4.24 pc at Rs 252 cr