FMCG major Nestle has released its Q3 earnings on Thursday. The company's shares also hit 52-week high after result announcement.
Nestle India has released its earnings for 1st January 2019 to 30 September 2019 and despite the headwinds of an economic slowdown, the FMCG major reported strong growth numbers. The company’s shares also hit 52-week high after result announcement on Thursday. Nestle India shares were trading at 16,505 apiece, up 0.53% on BSE at the time of publishing. Behind the company’s growth are its staple sunshine performers including Maggi range of noodles and its chocolate brands such as KitKat and Munch. “We have delivered broad-based volume and mix led growth. This is a trend we have demonstrated consistently in recent years. Maggi Noodles, KitKat, Nestle Munch, Ceregrow, Maggi Masala -ae- Magic, Nescafe RTD and Nangrow delivered strong performances during the year,” Suresh Narayanan, Chairman and Managing Director, Nestle India said. Nestle also said that the new launches in the Maggi range of noodles have also received “encouraging” response.
- The Swedish FMCG major’s India subsidiary reported Net Profit of Rs 1,969 crore.
- Nestle said that its total sales stood at Rs 12,295 crore in Q3. Domestic Sales grew at 10.9%.
- The FMCG major’s profit from operations are at 21.0% of sales.
- FMCG major reported Earnings Per Share of Rs 204.28.
Meanwhile, Nestle India’s parent company Nestle SA also announced its full-year results for 2019. The company reported strong performance in the South-Asia region due to performance in India. “South Asia grew at a mid single-digit rate driven by strong growth in India. Maggi, NAN and Nescafé performed well, helped by innovations and distribution expansion,” Nestle SA said on Thursday.
Before the release of Nestle’s quarter results, various analysts including HDFC Securities and IIFL Securities had predicted that the FMCG major will cross 20% profit growth. Motilal Oswal Securities also said that the sales will rise in double digits on-year basis.
Ahead of the results announcement, Nestle closed at Rs 16,400 apiece, up by 0.63% in intraday trade.