nestle Net profit drops dairynews7x7

FMCG giant Nestle India on Thursday reported a net profit of Rs 386.66 crore for the October-December quarter, down 19.99 per cent year-on-year (YoY) from Rs 483.31 crore recorded during the same period last year. 

The company’s revenue from operations came in at Rs 3,739.32 crore, up 8.93 per cent YoY compared to Rs 3,432.58 crore reported in the corresponding period last fiscal, it said in a regulatory filing. 

The company’s Board of Directors recommended a final dividend of Rs 65 per equity share for the year 2021. Nestle stated in the filing that during the year it saw broad-based, double-digit, volume and mix led growth, despite a highly volatile economic environment. 

The company’s total expenses in the October-December quarter, were up 8.23 per cent to Rs 3,022.97 crore, as against Rs 2,793.01 crore of the corresponding period. 

Also Read : Nestle India net profit rises 10.68% to ₹538.5 crore in June quarter

“Strong growth momentum continued in Maggi noodles aided by increased availability. KitKat and Munch registered stellar growth throughout the year. Nescafe Classic continued to deliver double-digit growth. Growth in e-commerce was fuelled by new emerging formats such as ‘Quick Commerce’ and ‘Click & Mortar’,” said Suresh Narayanan, Chairman and Managing Director, Nestle India.  

The company further stated that “it continues to witness high inflation in its key raw and packaging materials, where many are at 10-year highs.” However, Nestle noted that it remains confident of its “ability and competencies and will continue to make all efforts towards cost optimisation and seeking systematic efficiencies to mitigate the impact.” 

Also Read : Nestle India’s Net profit jumps by 14.6% in last quarter of FY 20-21

Total sales and domestic sales for 2021 increased by 10.1 per cent and 10.7 per cent, respectively, it added. The Maggie maker follows January-December financial year. 

Nestle India’s domestic sales were up 9.17 per cent to Rs 3,559.78 crore, as against Rs 3,260.70 crore in the July-September of 2020. 

“Domestic sales growth is largely driven by volume & mix and is broad-based,” the company said in an earning statement adding exports were lower mainly due to lower coffee exports and change in product mix. 

While its exports were down 6.63 per cent to Rs 146.42 crore, as against Rs 156.82 crore of the corresponding quarter.

Source : Business Today Feb 17th 2022

Subscribe for get daily dairy news

Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry’s standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book.