Companies

Nestle India net profit up 11% in Q2

Our Bureau New Delhi | Updated on July 28, 2021

Suresh Narayanan, CMD, Nestle India   -  Businessline

Achieves double-digit growth in domestic and export sales

Nestle India posted a net profit of ₹538.58 crore in the second quarter ended June 30, up 10.7 per cent over net profit of ₹486.60 crore in the corresponding quarter of the previous fiscal. The company recorded net profit of ₹602.25 crore in the January-March 2021 period.

Revenue from operations grew14 per cent on a year-on-year basis to ₹3476.70 crore in the quarter under review. The company follows the January-December period as financial year.

The company’s total sales grew 13.8 per cent and domestic sales were up 13.7 per cent, on a base which was impacted by the Covid-19-induced national lockdown with production disruptions across factories. It added that both domestic and export sales achieved double-digit growth largely driven by volume and mix.

The company said key products including Maggi noodles, Kitkat, Nestle Munch, and Maggi Sauces posted strong double-digit growth during the second quarter. However, in recent times commodity prices have been rising across oils and packaging materials. E-commerce channel’s share in domestic sales stood at 6.4 per cent in the second quarter witnessing a growth of 105 per cent.

E-commerce boost

Suresh Narayanan, Chairman & Managing Director, Nestle India, said in a statement, the company’s efforts to ensure last-mile access during the second pandemic wave was aided by e-commerce and in particular hyperlocal channels which grew 147 per cent in the first half of the year. “Last year, our commitment to India made us articulate an ambition to invest ₹2,600 crore over a 3-4-year period. I am pleased to announce that out of this, we have already invested about ₹1,000 crore thus far. This is a vindication of our confidence and trust in the Nestle journey in India,” he added.

In a BSE filing, the company said its board has given in-principle approval for disinvestment of its entire minority stake of 19.98 per cent in Sahyadri Agro and Dairy Pvt Ltd. The company is engaged in milk collection business in western India and the decision was taken “due to change in the business scenario.”

Published on July 28, 2021

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