Maggi, KitKat, Munch yet again Nestle’s profit drivers; continue winning streak of previous quarter

Maggi, Munch and KitKat were also the drivers of Nestle India’s growth in the previous quarter.

Nestle Rating buy: Company is recovering lost ground
Nestle Rating buy: Company is recovering lost ground

Continuing the winning streak from the previous quarter, Nestle’s popular products — Maggi noodle brand and KitKat and Munch chocolates — are yet again the drivers behind Nestle’s growth for Q1 with healthy profit levels. Announcing the Q1 results for Jan-Mar, Suresh Narayanan, Chairman and Managing Director, Nestlé India said, “We have continued on the track of volume-led growth with our iconic brands like Maggi, KitKat and Nestlé Munch delivering strong performances.” This is an echo of the company’s previous quarter results (Q4FY18) where MD had said, “Brands like Maggi, Nescafe, KitKat, Munch and Everyday continued to deliver strong performances.” However, Maggi, which has been a fan favourite for years, is still embroiled in proceedings with the Supreme Court for the alleged presence of lead. Nestle India said in a statement that the legal proceedings in the Maggi Noodles issue are currently on before the apex court. Maggi got into the lead controversy in 2015 after authorities reported the presence of lead in Nestle’s leading product. Nestle, however, has maintained that Maggi does not have lead. The company backed the claim with results from NABL (National Accreditation Board for Testing and Calibration Laboratories) accredited labs.

Also Read: Maggi, Kitkat continue to be fan favourites; remain Nestle’s golden egg laying hen

The Indian arm of Switzerland based Nestle has also said in the quarter results that it is looking to venture into the organic food market. The company is expected to launch products in ‘Milk Products and Nutrition’ category in the coming months, Nestle India MD said. Nestle, which has three products in the category currently, is catching up to the organic trend as this will be the company’s first offering marketed under ‘organic’ label. The new offering is “in line with our vision to provide exciting options rooted in nutrition, health and wellness,” Nestle India MD said. As of now, Nestle retails Baby and me, Ceregrow and Nangrow food nutrition products.

Nestle has recorded a 9% increase in its total sales, globally. In India, Nestle witnessed a growth of over 10%. Also, with Rs 463 crore, the company’s profits swelled by 9.25%. Nestle has also clocked in a total income of Rs 3,076.14 crore, it said in a statement.

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First published on: 15-05-2019 at 13:22 IST