Nestle India net profit rises 10.68% to ₹538.5 crore in June quarter

Nestle India on Wednesday posted a 10.68% increase in its net profit to ₹538.5 crore for the quarter ended June 30.

The company, which follows the January-December financial year, had reported a net profit of ₹486.60 crore in the year-earlier period. However, on a sequential basis, the company’s profits were down 10.5% from ₹602.2 crore in the January-March 2020 quarter.

The company’s revenues from operation for the quarter under review stood at 3,476.7 crore, up 14% from 3,050.4 crore in the year earlier.

Net sales during April-June 2021 rose 13.83% to ₹3,462.35 crore. While domestic sales were up 13.66% to ₹3,304.97 crore, exports grew 17.7% to ₹157.38 crore.

“Total sales and domestic sales for the quarter increased by 13.8% and 13.7% respectively, on a base impacted by COVID-19 induced lockdown, with production disruptions across factories. Domestic sales growth was driven by volume and mix. Export sales increased by 17.7% due to timing of exports to affiliates,” the packaged foods and beverages company said in a statement.

It added that key products such as Maggi noodles, Kitkat, Nestlé Much, Maggi Sauces and Maggi Masala-ae-Magic posted strong double-digit growth. The company also saw strong growth in e-commerce channels which grew by 105% and contributed 6.4% of domestic sales.

“In recent times, commodity prices have been rising across oils and packaging materials,” it added.

Nestlé India chairman and MD Suresh Narayanan said, “Despite the enormous challenges during the devastating second wave of the pandemic in this [June 2021] quarter, I am immensely proud of the resolve of my team and our partners.”

Pointing out that last year, Nestle had announced to invest ₹2,600 crore in India over a 3-4-year period, Mr. Narayanan said the company had already invested about ₹1,000 crore thus far.