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FMCG major Nestle India Ltd on Thursday reported a 38.40 per cent increase in net profit at ₹473.02 crore for the quarter ended December, helped by volume growth.
The company, which follows January-December financial year, had posted a net profit of ₹341.76 crore in the corresponding quarter a year ago.
Net sales rose 8.75 per cent to ₹3,130.74 crore during the quarter as against ₹2,878.83 crore in the corresponding quarter last year.
Domestic sales rose 10.04 per cent to ₹2,960.78 crore as against ₹2,690.51 crore in October-December 2018.
However, exports declined 9.74 per cent to ₹169.96 crore during the quarter from ₹188.32 crore a year ago.
Domestic sales increased through a combination of ‘volume & mix’, while exports dropped due to lower exports of coffee to Turkey, the company said in a statement.
Total income during October-December quarter rose 7.45 per cent to ₹3,193.99 crore as against ₹2,972.50 crore a year ago.
Total expenses increased 5.26 per cent to ₹2,579.37 crore as against ₹2,450.30 crore.
For the full year ended December 31, Nestle India’s net profit rose 22.56 per cent to ₹1,969.55 crore as against ₹1,606.93 crore in the previous year.
Net sales for the year stood at ₹12,295.27 crore, 9.62 per cent higher than ₹11,216.23 crore in the year-ago period.
Commenting on the annual results, Nestle India CMD Suresh Narayanan said, “We have delivered broad based volume and mix led growth. This is a trend we have demonstrated consistently in recent years.”
Products like Maggi Noodles, KITKAT, Nestl頍UNCH, CEREGROW, MAGGI Masala -ae- Magic, NESCAFɠRTD and NANGROW delivered strong performances during the year, he added.
“The trend of higher commodity prices witnessed in recent quarters is likely to continue in the near future,” he said.
In a separate filing, Nestle India said its board in a meeting held on Thursday recommended final dividend of ₹61 per equity share for the year 2019.
Shares of Nestle India Ltd on Thursday settled 0.79 per cent lower at ₹16,417.80 on the BSE.
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