Companies

Nestle India net up 14.6% in January-March period

Our Bureau New Delhi | Updated on April 20, 2021

Domestic sales rise 10.2 per cent driven by volume and mix

Nestle India reported a net profit of ₹602.25 crore for the quarter ended March 21, up 14.6 per cent, compared to ₹525.43 crore in the corresponding quarter of the previous fiscal.

The company follows the January-December period as the financial year. In the quarter under review, the company’s revenue from operations stood at ₹3,610.82 crore, up 8.6 per cent.

The company’s board declared an interim dividend of ₹25 per equity share (face value ₹10 per equity share) for 2021 amounting to ₹241 crore which shall be paid on and from May 19, along with the final dividend for the year 2020, it added.

The company said its total sales grew 8.9 per cent. “Domestic sales increased 10.2 per cent driven by volume and mix and is broad based. Export sales were lower by 12.9 per cent due to lower exports to affiliates. Demand in the out-of-channel further improved in the quarter but continues to be impacted by Covid,” it added.

Key brands’ performance

Suresh Narayanan, Chairman and Managing Director, Nestle India, said, “As the pandemic rages on, the quarter gone by has been another test of resilience of my team and our partners. Key brands like Maggi Noodles, Kitkat, Nescafe Classic, Maggi Sauces, Milkmaid and Maggi Masala-ae-magic delivered robust performance and achieved double-digit growth.”

He added that e-commerce continued to deliver strong performance and grew 66 per cent and maintained its “robust contribution” to our domestic sales.

“While the Nestlé India family has learnt to cope with the operating volatility in the pandemic, recent sharp escalations in key raw material prices poses challenges that we will resolutely respond to, while maintaining the integrity of our business model,” he added.

Narayanan also said the company, in recent times, has hired over 500 employees across its operating locations. “In addition, the scale of our operations is also creating indirect employment opportunities in the surrounding communities,” he added.

Published on April 20, 2021

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