Nestle India Ltd, a leading FMCG company, recorded a 4.38 per cent increase in net profit, reaching Rs 655.61 crore for the quarter ended December 31 compared to Rs 628.06 crore in the same period last year, according to a regulatory filing.
Total expenses during this period rose by 6.11 per cent to Rs 3,636.94 crore. The company's domestic sales witnessed a growth of 8.86 per cent to Rs 4,421.79 crore, driven by pricing and mix growth, particularly notable in e-commerce and out-of-home channels. Suresh Narayanan, Chairman and Managing Director of Nestle India, attributed the growth to increased brand investments across all product groups.
Conversely, exports declined by 5.58 per cent to Rs 161.84 crore compared to Rs 171.42 crore in the same quarter last year. However, Nestle India's revenue from operations increased by 8.07 per cent to Rs 4,600.42 crore compared to Rs 4,256.79 crore in the December quarter of the previous fiscal year.
Nestle India also reported its financial results for the calendar year 2023, where its profit surged by 25.44 per cent to Rs 2,998.67 crore, and revenue from sales of its products rose by 13.3 per cent to Rs 19,021.05 crore.
Furthermore, the company's board approved the slump sale of the Nestle Business Services ('NBS') Division to Purina PetCare India, a subsidiary of Nestle SA, for Rs 79.8 crore. The transaction is set to take effect from July 1, 2024, subject to customary closing conditions.
At the stock market, Nestle India's shares were trading at Rs 2,491.55 apiece on the BSE, a 1.37 per cent increase from their previous close.
