Nestle India Q1 net profit rises 15% to Rs 602 crore

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On a standalone basis, Nestle India net profit jumped 14.62% to Rs 602.25 crore on 8.58% increase in revenue from operations to Rs 3,610.82 crore in Q1 FY21 over Q1 FY20.

During the quarter ended, total sales increased by 8.9% while domestic sales soared 10.2% year-on-year (Y-o-Y) driven by volume & mix and was broad based. Export sales tumbled 12.9% Y-o-Y due to lower exports to affiliates. Demand in out of home channel further improved in the quarter but continuef to be impacted by COVID-19, the company said.

E‐Commerce channel grew 66% Y-o-Y and contributed 3.8% of domestic sales. However, the company witnessed headwinds in commodity and packaging materials. The FMCG major said it achieved plastic neutrality across all brands in 2020.

The board has declared an interim dividend for FY2021 of Rs 25 per equity share, which shall be paid on and from 19 May 2021.

Commenting on the Q1 results, Suresh Narayanan, the chairman and managing director (MD) of Nestle India, said: It’s a proud moment to witness consumer trust and love for key brands like MAGGI NOODLES, KITKAT, NESCAFÉ CLASSIC, MAGGI SAUCES, MILKMAID, MAGGI MASALA‐AE‐MAGIC deliver robust performance and achieve double digit growth. Noteworthy, has been e‐commerce which continued to deliver strong performance and grew by 66% to maintain its robust contribution to our domestic sales.

While the Nestlé India family has learnt to cope with the operating volatility in the pandemic, recent sharp escalations in key raw material prices poses challenges that we will resolutely respond to, while maintaining the integrity of our business model, he added.

Nestlé India is a subsidiary of Nestlé S.A. of Switzerland, the world’s largest food and beverage company. Nestlé India has presence across India with 8 manufacturing facilities and 4 branch offices.

The Nestlé India scrip slipped 0.02% to settle at Rs 17,086.25 today, 20 April 2021.

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