Synopsis: In essence, Nestle India recorded a significant 27% rise in net profit, totaling Rs 934 crore in the March quarter. This remarkable growth was driven by strong performance across its product portfolio, despite facing challenges related to food inflation and volatile commodity prices.
In the March quarter, Nestle India witnessed a 27% increase in net profit, reaching Rs 934 crore, propelled by robust growth across its product range, despite challenges posed by food inflation and fluctuating commodity prices.
In Mumbai, Nestle India revealed a remarkable 27% year-on-year increase in net profit, reaching Rs 934 crore during the March quarter. Total sales also saw a significant uptick of 9.3% year-on-year to Rs 5,254 crore, bolstered by strong growth across its product range, the company announced on Thursday.
"We're delighted to report double-digit growth despite the challenges posed by escalating food inflation and fluctuating commodity prices. Our diverse product portfolio has experienced robust momentum, driven by a blend of pricing strategies and product mix," stated Suresh Narayanan, chairman and managing director of Nestle India.
Nestle acknowledged the impact of soaring commodity prices, particularly in coffee and cocoa, which have reached historic highs. "Cereals and grains are experiencing a structural cost surge due to minimum support prices (MSP), while milk prices are anticipated to rise due to the expected harsh summer," the company highlighted.
Among its product lineup, confectionery, spearheaded by Kitkat, showcased outstanding performance, making India its second-largest global market.
Nescafe continued to bolster the firm's beverage portfolio penetration, while the milk products and nutrition segment exhibited robust growth despite inflationary pressures,
Nestle India, headquartered in Gurgaon, disclosed. India emerged as the largest global market for the company's renowned Maggi offering.
Nestle's results provided a glimmer of optimism for investors, especially after Hindustan Unilever (HUL),
India's largest consumer goods company, reported a decline in net profit for the first time since the Covid-impacted March 2020 quarter, amidst subdued rural demand.
Analysts noted that semi-urban and rural sales contribute to less than one-fourth of Nestle's total turnover.
Moreover, the company unveiled plans to introduce its premium brand Nespresso coffees and machines in India, with the launch slated by the end of 2024.
The inaugural Nespresso boutique is set to open in New Delhi before expanding to other key cities.
On Thursday, Nestle India's stock price concluded at Rs 2,562.7 apiece on the BSE, marking a 2.39% increase.
In summary, Nestle India achieved a noteworthy 27% surge in net profit to Rs 934 crore during the March quarter, fueled by substantial growth across its product lineup, even amid the hurdles presented by food inflation and unpredictable commodity prices.
