FMCG major Nestle India Ltd has reported a net profit of ₹655.6 crore, a 4% rise on a year-on-year basis during the fourth quarter ending December 31, 2023, primarily driven by growth momentum in e-commerce and out-of-home channels.
The Maggi instant noodle maker's revenue from operations surged 8% to ₹4,583.6 crore, with total sales growth of 8.3% and domestic sales growth of 8.9%.
The company's profit in Q3 was recorded at ₹908 crore, up 37.3% as compared to ₹661.4 crore in the year-ago period. It also included a one-time gain of ₹106.4 crore.
Nestle India's EBITDA income for the fourth quarter surged 13% to ₹1,095.12 crore, while margins were at 23.8%. The earnings per share was at ₹6.80.
Nestle India, which owns brands such as Nescafe, Maggi, and Kit Kat, follows the calendar year financial reporting. Suresh Narayanan, chairman and MD, Nestlé India says despite external challenges, Nestle India has delivered a "strong performance" this quarter.
"Domestic sales grew by 8.9% on the back of pricing and mix growth, with strong growth momentum in e-commerce and out-of-home channels. The quarter was marked by an increase in brand investments across all product groups. During the year 2023, our total sales grew by over 13.3% and we crossed INR 19,000 crore mark," he says.
The company, in a statement, says in Q4, strong demand for NESCAFÉ CLASSIC and NESCAFÉ SUNRISE propelled the Beverages product group to be its "largest contributor" to growth. "Milk and Nutrition product group posted double-digit growth," says Nestle India.
The company says it is observing an "uptick" in sales in "RUrban markets" despite the challenging environment. "We expanded our direct coverage and added 5,300 villages this quarter, reaching a total of over 196,000 villages," says Nestle.
The company also received the land allotment letter from the Odisha government to set up its 10th factory.
In its commodity outlook, Nestle India says coffee prices continue to be "volatile" and are historically high due to limited availability. However, it expects healthy milk flush in winter to keep prices stable. "Commodities such as wheat and rice are stable as of now. Rain deficit is expected to impact the production of maize, sugar, oil seeds and spices that may impact pricing."
The board of directors of Nestle India has declared 3rd interim dividend for the financial year 2023-24 of ₹7 per equity share, amounting to ₹674.91 crore. It will be paid on and from March 5, 2024.
The Nestle India shares were trading 1.67% up at ₹2,499 on the BSE today. Nestle India on January 5, 2024, had conducted a stock split in the ratio of 1:10. Each equity share of a face value of ₹10 apiece that an investor held was subdivided into 10 shares of the face value of ₹1 each.
