FMCG major Nestle India reported a net profit of ₹668.34 crore for the third quarter ended September, up 8.25 per cent over ₹617.37 crore in the corresponding period of the previous year.

The company, which follows January-December financial year, said its revenue from operations stood at ₹4,591 crore in the quarter under review, up 18.24 per cent.

The board of the company declared second interim dividend of ₹120 per share for the fiscal amounting to ₹1,157 crore to be paid from November 16.

Suresh Narayanan, Chairman and Managing Director, Nestle India, said this was the highest quarterly sales growth in the last five years and the growth was backed by continued strong volume and a broad based double-digit growth across all categories.

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“Growth has been very strong in the large metros and mega cities and continued to be robust across smaller town classes, including rural markets,” he added.

While domestic sales grew 18.3 per cent, exports were up by 15.7 per cent, driven by expansion in newer markets, and Maggi noodles and confectionery segment.

Last month, Nestle announced that it will invest ₹5,000 crore in India till 2025.

“The Global Board has strongly supported the direction to accelerate investment focus and the pace of business in India,” Narayanan said.

Commodity outlook

The company said that it is witnessing early signs of stability in prices of a few commodities such as edible oils and packaging materials. It pointed out that prices of fresh milk, fuel, grains and green coffee remain firm with continued increase in demand and volatility.

D2C platform

The packaged food manufacturer announced the launch of its first ever direct-to-consumer platform—mynestle.in. MyNestle will available for consumers in Delhi-NCR in the initial phase.

“Created specifically keeping the consumer needs in mind, I am confident that MyNestle will delight the consumer in every way with curated product bundles, personalised gifting, subscriptions, discounts, and much more,” he added.

Quick commerce

Nestle India said that e-commerce contributed 7.2 per cent of the total sales during the quarter, fuelled by new and emerging formats such as quick commerce.

Organised trade channel continued to witness strong growth in the wake of high footfalls and robust growth seen for out-of-home channel.

Pet foods

In August, the Company entered into a business transfer agreement for the acquisition of pet food business on a slump sale basis from Purina Petcare India in a related party transaction.

“In terms of the business transfer agreement, the business has been acquired by the company with effect from October 1. Based on the valuation report of the registered valuer (PwC) an amount of ₹142.13 crore was paid to Purina Petcare India after the reporting date as a consideration for the acquisition of the Pet Food Business,” Nestle India stated. 

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