Shares of Nestle India Ltd on Tuesday settled at Rs 19,389.15 on BSE, down 0.20 per cent from its previous close.
FMCG major Nestle India Ltd on Tuesday reported a 5.15 per cent rise in net profit at Rs 617.37 crore for the third quarter ended September 2021, driven largely by a high single-digit volume and mix growth in the domestic market across brands.
The company, which follows the January-December financial year, had posted a profit of Rs 587.09 crore in the same period a year ago, Nestle India said in a BSE filing. Net sales rose 9.63 per cent to Rs 3,864.97 as against Rs 3,525.41 crore in the corresponding period of the last fiscal.
In a separate filing, Nestle India said its board on Tuesday approved a second interim dividend of Rs 110 per equity share of Rs 10 each for the year 2021 amounting to Rs 1,060.57 crore, which will be paid on and from November 16, 2021.
Commenting on the quarterly performance, Nestle India Chairman and Managing Director Suresh Narayanan said,”This quarter has once again seen the company deliver ‘double-digit broad-based value growth’ in domestic sales across categories.” “Organised trade witnessed a resurgence in the third quarter with strong revenue growth in the mid-twenties after a muted second quarter which was impacted by the pandemic second wave,” he noted.
Nestle India’s domestic sales were up 10.07 per cent to Rs 3,687.37 crore as against Rs 3,350.10 crore in July-September 2020. “The growth is broad-based and largely driven by volume and mix,” the company said.
Narayanan said Nestle India continued its sustained double-digit growth in not just the large metros, but also “small town Bharat”. “This reinforces our belief in the power to unlock the potential of small towns with our relevant portfolio.
“We are firmly and resolutely on a journey to accelerate it further by using a healthy mix of a customised portfolio, enhanced distribution infrastructure and deployment of resources, localized communication, enhanced visibility and building consumer connect,” he added.
He further said the e-commerce channel showed strong acceleration on the back of convenience and pandemic driven consumer behaviour and it is “fully leveraged by a team who used the power of meaningful shopper insights, data analytics, speed, flexibility, sharp communication and customisation for the channel at scale”. The company said the e-commerce channel is expected to continue its growth journey and is gaining increasing traction.
E-commerce as a channel is also developing new models like Quick Commerce (hyper-local) leading to lower delivery lead times, effectively improving shopper experience. Export sales rose 1.30 per cent to Rs 177.60 crore as against Rs 175.31 crore earlier. In the July-September quarter, Nestle India’s total expenses increased 10.48 per cent to Rs 3,081.99 crore, compared to Rs 2,789.67 crore in the year-ago period.
Sales in organised trade also reported a “broad-based growth” across all food and beverages categories, especially coffee and confectionery. This was led by a decrease in pandemic intensity and increase in vaccination coverage.
It further said the out of home (OOH) segment is on a “recovery path” with the gradual opening of hotels, restaurants, offices and malls. “There are signs of a return to pre-pandemic levels of business traction in some geographies, categories and channels,” it said.
The prepared dishes and cooking aids segment continued growth momentum and improved availability. Maggi Noodles and Maggi ‘Masala-ae-Magic’ posted healthy growth, while Maggi sauces had somewhat muted growth due to decreased in-home consumption, high base and increased competitive intensity, it said.
In confectionery, brands such as Kitkat, Munch and Milkybar registered high double-digit growth. In the beverages category, there was a strong double-digit growth in Nescafe Classic led by increased penetration, visibility actions and sustained generating demand inputs. Shares of Nestle India Ltd on Tuesday settled at Rs 19,389.15 on BSE, down 0.20 per cent from its previous close.