The Hindu Business Line : Nestle net profit up 26.5% in Q2

New Delhi, Aug. 1 Nestle India has announced a growth of 26.5 per cent in net profits at Rs 121.1 crore for the second quarter ending June 30, 2008 compared with Rs 95.69 crore earned in the corresponding quarter last year.

Net sales for the FMCG major grew by 23.5 to Rs 1,035.6 crore (Rs 838.88 crore) during the period.

“I am pleased with the continuing strong results. They reflect the passion and capability of our people to engage with consumers, and the increasing strength of our brands to add value,” said Mr Martial Rolland, Chairman and Managing Director, Nestle India, in a release.

The FMCG major said commodity markets continue to be very challenging.

Net domestic sales increased by 24.75 per cent to Rs 944.24 crore during the quarter. Export sales grew by 11.4 per cent during the quarter to Rs 91.4 crore.

According to Nestle, net profit margin improved marginally to 11.69 per cent compared with 11.41 per cent for the same quarter the previous year. EBIT margin for the quarter, at 16.7 per cent, had been largely impacted by the higher expenditure on advertising and sales promotion, said Nestle.

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