Nestle India profit up 9.6 per cent at Rs 342 crore on better sales

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New Delhi | Published: February 15, 2019 5:09:45 AM

FMCG major Nestle India on Thursday reported a 9.59% year-on-year increase in its net profit at Rs 341.76 crore for three months ended December 2018 on the back of a 12% jump in domestic sales to Rs 2,690.51 crore.

nestle, nestle indiaThe company follows the calendar year as its financial year so its earnings were for the fourth quarter.

FMCG major Nestle India on Thursday reported a 9.59% year-on-year increase in its net profit at Rs 341.76 crore for three months ended December 2018 on the back of a 12% jump in domestic sales to Rs 2,690.51 crore.

The company follows the calendar year as its financial year so its earnings were for the fourth quarter.

The maker of instant Maggie noodles reported an 11.37% y-o-y increase in revenues to Rs 2,897.27 crore in the quarter. The company’s Ebitda margins for the quarter contracted by 272 bps y-o-y to 19.3%, compared with 22.02% in Q4CY17. Consequently, the Ebitda (earnings before interest, tax, depreciation and ammortisation) decreased by 2.38% y-o-y to Rs 559.2 crore compared with Rs 572.85 crore in Q4CY17.

Cost of materials consumed for the quarter increased by 9.2% to Rs 1,200.36 crore from Rs 1,098.96 crore in Q4CY17.

“We have, once again, delivered volume-led profitable growth. There has been double-digit growth in almost all the categories, supported by a step-up in demand generating activities including on new products. Our iconic brands like Maggi, Nescafe, Kitkat, Munch and Everyday continued to deliver strong performances,” Nestlé India chairman and managing director Suresh Narayanan said.
“We believe the recent outperformance in Nestle will continue with a strong focus on volume-led growth. The company is winning back market share in its core categories on the back of increasing focus on distribution, new product launches and strong media campaigns. While beverages and chocolates will lead the growth, other segments (milk products & nutrition, prepared dishes) are also outperforming their respective industry growth numbers,” analysts at Macquarie Research said in a report.

“In the first half of this decade (CY11-CY15), volume growth was missing across most categories, however that has changed significantly under the new leadership in the last couple of years. The renewed focus on market share, increasing distribution and aggressive product launches has helped Nestle to move in a higher growth orbit,” analysts said.
Shares of the firm on Thursday closed at `10,611.55, up by 0.37% in the BSE.

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