Maggi maker Nestlé India’s net profit grows 8.3% to ₹668 crore in Q2
- Nestle India says that Q2 saw the highest sales growth during a quarter, in the last five years.
- Growth for the quarter was driven by strong sales in Maggi noodles, Milkmaid, Nescafe Classic and Sunrise.
- It sees early signs of stability in prices of edible oils and packaging materials.
- Nestle however adds that fresh milk, fuels, grains and green coffee costs are expected to remain firm.
AdvertisementFMCG major Nestlé India reported an 8.3% growth in second quarter net profit to ₹668 crore as compared to ₹617 crore in the same quarter last year. Its revenue from operations grew by 18% to ₹4,591 crore from ₹3,882 crore in Q2FY22.
On a sequential basis, its profits grew 29.7% while revenues grew by 13.7%.
“I am delighted to share that we have witnessed the highest sales growth during a quarter in the last five years. This achievement has been on continued strong volume and mix evolution with broad based double-digit growth across all categories. Growth has been very strong in the large metros and mega cities and continued to be robust across smaller town classes including rural markets,” said Suresh Narayanan, chairman and MD at Nestlé India .
The company declared its second interim dividend of ₹120 per equity share, amounting to ₹1,157 crore, which will be paid on and from November 16, 2022.
|Revenue from operations
The FMCG player was able to book healthy profit this quarter as raw material prices of oil and fuel eased after a post-Ukraine war spike.
“We are witnessing early signs of stability in prices of a few commodities such as edible oils and packaging materials. However, fresh milk, fuels, grains and green coffee costs are expected to remain firm with continued increase in demand and volatility,” said the company in an exchange statement.
Following the better-than-expected results, shares of the company were up 1.22% to ₹19,624 in the mid-afternoon trade.
The company said growth was driven by strong sales in Maggi noodles, Milkmaid, Nescafe Classic, Sunrise and packaged mixes for vending machines, during the quarter.
Meanwhile, shares of other FMCG players were also on the rise post the strong results that indicate revival in demand across segments.
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