Nestle India on thursday posted profit for the June 2023 quarter at Rs 698.34 crore, up 36.9 per cent in comparison to Rs 510.24 crore during the same quarter last year. It posted revenue from operations at Rs 4658.53 crore during the quarter ended June 30, 2023, up 15.1 per cent as against Rs 4045.69 crore a year earlier. Nestle India clocked total sales worth Rs 4619.50 crore during the quarter.
“This is the fifth quarter in a row of double-digit growth across all product groups. Domestic sales growth is broad based and grew by 14.6 per cent, on the back of prudent pricing and supported by mix and volume with targeted brand support. Key brands continued to perform well, led by KitKat, Nescafé and Maggi among others,” said Suresh Narayanan, Chairman and Managing Director, Nestlé India.
Nestle’s Q2 performance across business verticals
Nestle India’s e-commerce business contributed to 6.5 per cent of the quarterly sales and ‘continued the growth momentum driven by Quick Commerce’. The organised retail, meanwhile, continued to deliver strong broad-based growth across categories driven by store expansion and improved footfalls. The Out-of-Home business, it said, continued to deliver strong growth this quarter, through kiosk expansion and prioritization of emerging channels. Exports, meanwhile, registered double-digit growth across all categories through proliferation of products such as Nescafé Sunrise and Polo.
“Our RURBAN strategy was helped by increasing the distribution footprint with relevant portfolios, thereby achieving higher penetration. We witnessed strong growth across mega cities and metros, robust performance in tier-1 to 6 towns and continued strength in rural markets,” the company said in a regulatory filing.
In terms of product groups, prepared dishes and cooking aids registered double-digit growth driven by Maggi Noodles and aided through distribution expansion and consumer activations.Milk products and nutrition category too delivered double-digit growth despite
inflationary pressures, driven by Milkmaid and Peptamen. Confectionery category posted double-digit growth led by KitKat and Munch. Beverages growth was led by greater household penetration by Nescafé Classic, Nescafé Sunrise and Nescafé Gold for both hot and cold coffee occasions. Nescafé also launched cold coffee premix Nescafé All in 1 Frappe. In the petcare category, Felix received positive feedback from trade and cat parents.
Nestle India’s ‘Make in India’ focus
The company announced its tenth factory in Odisha. “We have now received an in-principle approval from Industrial Promotion & Investment Corporation of Odisha Limited (IPICOL) for its Odisha factory. Our dream and ambition is to also make the Odisha factory state-of-art in line with our continuing commitment to gender diversity, sustainable manufacturing, paperless digitally managed facility with an abiding focus on the environment in terms of practices,” it said.
Nestle India continued to invest on brand building, innovation and renovation. During the quarter, it launched three notable new products in the Indian market – Resource Fiber Choice, a gut health solution, Everyday Zero, the dairy whitener with no added sugar and Munch breakfast cereals.