Nestle India Q1 profit up 25% at ₹737 cr; net sales surge 21%

FMCG major Nestle India today reported 25% rise in its net profit during January 2023 to March 31 at ₹737 crore as compared to ₹590.7 crore in the same period a year ago. The company's total sales surged 21.3% to ₹4,808 crore YoY, while its domestic sales growth was recorded at 21.2% in the March quarter. Nestle India's profit from operations was 21% of the total sales at ₹1,008 crore during the said quarter, while its earnings per share stood at ₹76.4.

Nestle has also declared an interim dividend of ₹27 per equity share on April 12, 2023. It will be paid on and from 8th May 2023, along with the final dividend for 2022 of ₹75.0 per equity share approved in the Annual General Meeting on April 12, 2023.

Nestle India had recorded ₹628 crore net profit in December quarter, while its sales stood at ₹4,286 crore during the period.

Talking about Nestle India's quarterly performance, chairman and MD Suresh Narayanan said: “This is the highest growth for the Company in a quarter in the last 10 years (excluding the exceptional quarter in 2016 which was off a low base in 2015). All our product groups delivered double digit growth, a notable feature in these past four quarters in a row."

“All our product groups delivered double digit growth, a notable feature in these past four quarters in a row. Confectionery led by KITKAT, and MUNCH posted a strong growth, supported by consumer led campaigns, innovation and engagement,” Narayanan said.

Segment-wise, the e-commerce channel delivered strong performance with significant growth in quick commerce, said Nestle India, adding that its organised trade channel also saw broad-based growth across product groups in retail business fuelled by rapid outlet expansion.

Meanwhile, the company has informed that Matthias Christoph Lohner, executive director -technical, will demit office from June 30, 2023. Satish Srinivasan will succeed in place of Lohner from July 1, 2023, subject to approvals. Matthias will be taking up a new assignment with a Nestle Affiliate. Srinivasan joined Nestle India in the year 1993 and worked on various assignments across Nestle factories in India, Philippines, Sri Lanka, Equatorial Africa Region and lndo China Region, with increasing responsibilities. He holds an Engineering Degree and has over 35 years of experience.

Reacting to the development, the shares of Nestle India dipped 0.22% to ₹20,643.10 on the Bombay Stock Exchange. The stock, which is trading way below its 52-week high of ₹21,053 achieved on October 24, 2022, has given 0.35% return in the past week; 9.28% in the past month; 1.68% in the past six months; 5.35% in the year-to-date; and 13.39% in the past year. At the current share price, the company's market cap stands at ₹1,98,982.27 crore.