Nestle India posted a net profit of INR 736.64 crore in the first quarter, indicating a 24.7% increase. This is accompanied by a revenue growth of 20.98% to INR 4,830.53 crore during the quarter, considering that the company follows the January-December period as its fiscal year. Notably, Nestlé India, a leading packaged food company, reported that this quarter’s growth was the highest in a decade, excluding the exceptional quarter in 2016 when the base was low in 2015.
The company recorded a growth of 21.3% in total sales and 21.2% in domestic sales.
“I am pleased to share that we have continued to deliver robust sales growth this quarter, which is broad-based with a healthy balance of pricing, volume, and mix,” said Suresh Narayanan, Chairman and Managing Director, Nestle India. He added all product categories witnessed double-digit growth consecutively for the fourth quarter in a row.
“Confectionery, led by Kitkat and Munch, posted strong growth, supported by consumer-led campaigns, innovation, and engagement. Beverages turned in another quarter of robust growth and market share gains led by Nescafe Classic, Sunrise, and GOLD. Prepared Dishes and Cooking Aids delivered strong growth across all products in its portfolio. One can discern portfolio upgradation happening in this category,” Narayanan stated. Milk products and Nutrition continued its strong performance led by Milkmaid, the company said.
“Our out-of-home business continued to accelerate rapidly this quarter. We continued with portfolio transformation, continued expansion, route to market focussed on relevant geographies, channel prioritisation, and opening of new kiosks in key locations. Our strong performance in e-commerce continued with significant growth in quick commerce,” he noted.
According to Narayanan, the company has expedited its journey towards sustained growth in “Rurban” areas, along with maintaining strong momentum in metro and mega cities.
“Rural growth was also strong, secular, and robust, being volume-led, which gives greater confidence and impetus to our efforts to enhance our footprint,” he added. Meanwhile, exports also posted strong double-digit growth in global markets through both mainstream and ethnic channels.
Nestle India reported that it is observing initial indications of a decline in prices of edible oils, wheat, and packaging materials concerning the commodities outlook. However, it further added that the cost of fresh milk, fuels, and green coffee is expected to remain stable due to the ongoing rise in demand and fluctuations.
On April 12, the company’s board announced an interim dividend of INR 27.0 per equity share for 2023, resulting in a total payout of INR 2,603.2 million.
