February 8, 2024
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Nestle India Q3 profit up 4% to Rs 656 crore
Nestle India reported a 4.4% year-on-year rise in its net profit to Rs 655.6 crore during the October-December quarter, missing Bloomberg consensus estimate of Rs 806 crore.
Revenue from operations during the period was up 8.1% to Rs 4,600 crore, again below estimates of Rs 5,037 crore.
Earnings before interest, tax, depreciation and amortisation (Ebitda) came in at Rs 1,095 crore, up
12.5% year-on-year. However, it was below estimates of Rs 1,229 crore. Margin was at 23.8% versus 22.9% during the same quarter last year.
Domestic sales grew by 8.9% on the back of pricing and mix growth, with strong growth momentum in e-commerce and out-of-home channels. The quarter was marked by an increase in brand investments across all product groups. During the year, the company’s total sales grew by over 13.3% and crossed the Rs 19,000-crore mark.
The beverages business witnessed a double-digit growth and Nescafe gained significant market share. Milk and milk product group also posted double-digit growth. Prepared dishes and the out-of-home business was the fastest-growing business of the company during the quarter. It was fuelled by portfolio transformation and premiumisation, channel prioritisation, digital lead generation, and new customer acquisition.
E-commerce contributed 7% of domestic sales in this quarter, whereas organised trade also witnessed strong growth backed by festive walk-ins and new product launches, it said.
“I am happy to share that out out-of-home business continued to accelerate rapidly this quarter by focusing on relevant innovations, potential geographies, and robust penetration in emerging channels with the opening of new kiosks in key locations,” Suresh Narayanan, chairman and managing director, said.
Interim Dividend: The board of directors approved the declaration of a third interim dividend of Rs 7 per equity share for FY24.
On Wednesday, Nestle shares closed up 1.68% at Rs 2,499.05 on the BSE.
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