Nestle India posted net profit of ₹617.37 crore for the quarter ended September 30, up 5.15 per cent compared to net profit of ₹587.09 crore in the corresponding quarter of the previous fiscal. Total sales in the third quarter stood at ₹3,864.57 crore, up 9.63 per cent.
The company follows January-December financial year. The packaged food major said domestic sales growth at 10.1 per cent was broadbased and largely driven by volume and mix. Export sales grew 1.3 per cent. The company’s board declared second interim dividend of ₹110 per equity share amounting to ₹1,060.57 crore.
In a statement, Suresh Narayanan, Chairman and Managing Director, Nestle India, said, “This quarter once again saw the company deliver ‘double-digit broad-based value growth’ in domestic sales across categories. Organised trade witnessed a resurgence in the third quarter with strong revenue growth in mid-20s after a muted second quarter which was impacted by the pandemic second wave.”
He said the e-commerce channel showed strong acceleration on the back of convenience and pandemic-driven consumer behaviour.
“Nestlé India continued its path of robust and sustained double-digit growth in not just the large metros, but also small towns. This reinforces our belief in the power to unlock the potential of small towns with our relevant portfolio,” Narayanan said.
The packaged food major said that prepared dishes and cooking aids segment with the Maggi portfolio achieved good growth despite the high base effect due to improved availability.
In the confectionery segment, brands Kitkat and Munch registered high double-digit growth. “Strong double-digit growth was seen in Nescafe Classic led by increased penetration, visibility actions and sustained demand,” the company added.
Meanwhile, the company said the short to medium term price outlook for key commodities such as wheat, coffee, edible oils “remains firm to bullish” while costs of packaging materials continue to increase amid supply constraints, rising fuel and transportation costs.
It added that fresh milk prices are also expected to “remain firm” with continued increase in demand and rise in feed costs to farmers.
“The recent scrapping of import duties on edible oils, if continued next year, beyond March 2022, can have positive impact in muting food inflation pressures. We continue to, in an environment of raw and packaging material inflation, keenly look for opportunities for cost optimisation and efficiencies as we have successfully done in the past,” the statement added.