Companies

Nestle India profit up 2.25% at ₹483 crore in December quarter

Our Bureau New Delhi | Updated on February 16, 2021

Suresh Narayanan, CMD, Nestle India   -  Businessline

Revenue from operations grew 9 per cent

Nestle India posted a net profit of ₹483.31 crore for the quarter ended December 31, 2020, up 2.25 per cent compared with ₹472.64 crore in the corresponding quarter of the previous fiscal. Revenue from operations grew 9 per cent to ₹3,432.58 crore in the quarter under review.

The company’s board approved a final dividend of ₹65 per equity share amounting to ₹626.70 crore for the year 2020. “The total dividend for 2020 aggregates to ₹200 per equity share which includes one interim dividend of ₹135 per equity share paid on 20 November 2020,” Nestle India said in its BSE filing.

The packaged food major, which follows January-December period as the financial year, clocked a net profit of ₹2082.43 crore in the full year of 2020 recording a growth of 5.79 per cent over the previous financial year. Revenue from operations for the full year grew 7.93 per cent to ₹13,350.03 crore.

The company said total sales for the year grew 8.1 per cent. Domestic sales for the year were up 8.5 per cent largely driven by volume and mix and was broad based but demand in out-of-home channel was impacted throughout the year due to the pandemic, the company added. Owing to lower coffee exports, the company’s export sales grew by a mere 1.4 per cent in 2020.

In a statement, Suresh Narayanan, Chairman and Managing Director, Nestlé India, said, “Nearly two-thirds of our key brands like Maggi Noodles, Kitkat and Nescafe Classic posted double digit growth last year. This was backed by a step up in marketing spends, especially in the last quarter. Our innovation and renovation pipeline continued to be a thrust area across categories like foods, breakfast cereals and Nestlé Health Sciences.”

He added that e-commerce continued to grow strongly and now contributes 3.7 per cent of domestic sales. “After initial challenges due to the pandemic, the demand in out-of-home channels has continued to improve, sequentially over quarters and we remain confident of its recovery,” Narayanan added.

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Published on February 16, 2021
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