Nestlé India posted a net profit of ₹736.64 crore in the first quarter, up 24.7 per cent. Revenue from operations for the company, which follows the January-December period as the fiscal year, grew 20.98 per cent to ₹4,830.53 crore for the quarter under review. The packaged food major said this was the highest growth for the company in a quarter in the last ten years (excluding the exceptional quarter 2016 when the base was low in 2015).

The company clocked 21.3 per cent growth in terms of total sales and 21.2 per cent growth in terms of domestic sales.

“I am pleased to share that we have continued to deliver robust sales growth this quarter, which is broad-based with a healthy balance of pricing, volume, and mix,” said Suresh Narayanan, Chairman and Managing Director, Nestlé India. He added all product categories witnessed double-digit growth consecutively for the fourth quarter in a row.

Also read: India is among fastest growing markets for Nestle: CMD

“Confectionery, led by Kitkat and Munch, posted strong growth, supported by consumer-led campaigns, innovation, and engagement. Beverages turned in another quarter of robust growth and market share gains led by Nescafe Classic, Sunrise, and GOLD. Prepared Dishes and Cooking Aids delivered strong growth across all products in its portfolio. One can discern portfolio upgradation happening in this category,” Narayanan stated. Milk products and Nutrition continued its strong performance led by Milkmaid, the company said.

“Our out-of-home business continued to accelerate rapidly this quarter. We continued with portfolio transformation, continued expansion, route to market focussed on relevant geographies, channel prioritisation, and opening of new kiosks in key locations. Our strong performance in e-commerce continued with significant growth in quick commerce,” he noted. Narayanan said the company accelerated its sustained growth journey in “Rurban”, which was complemented by strong momentum in metro and mega cities.

“Rural growth was also strong, secular, and robust, being volume-led, which gives greater confidence and impetus to our efforts to enhance our footprint,” he added. Meanwhile, exports also posted strong double-digit growth in global markets through both mainstream and ethnic channels.

In terms of commodities outlook, Nestle India noted that it is witnessing early signs of softening of prices of edible oils, wheat, and packaging materials. However, the cost of fresh milk, fuels, and green coffee are expected to remain firm because of the continued increase in demand and volatility, it added.

The company’s board has declared an interim dividend for 2023 of ₹27.0 per equity share on April 12, amounting to ₹2,603.2 million.

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