Nestlé India Q1 net profit jumps 25% to ₹737 crore, beats estimates

• Net sales for the maker of Kitkat and Maggi rose 21% to ₹4,808 crore in the first quarter of its fiscal year 2023.
• The company follows the January-December financial year.
• Its total expenses in the January-March quarter increased 21% from a year earlier to ₹3,874 crore.
• The company has announced a dividend of ₹27 per share.

FMCG major Nestlé India on Tuesday reported a better-than-expected 25% rise in net profit to ₹737 crore for the March quarter compared with ₹591 crore in the same period a year ago.

As per Kotak Institutional Equities estimates, the FMCG major was expected to report net profit of ₹692 crore.

Net sales for the maker of Kitkat and Maggi rose 21% to ₹4,808 crore in the first quarter of its fiscal year 2023 as against ₹3,963 crore in the year-ago period. The company follows the January-December financial year.

"I am pleased to share that we have continued to deliver robust sales growth this quarter, which is broad-based with a healthy balance of pricing, volume and mix. This is the highest growth for the company in a quarter in the last 10 years (excluding the exceptional quarter in 2016 which was off a low base in 2015),” said Suresh Narayanan, chairman and MD at Nestle India.

Its total expenses in the January-March quarter increased 21% to ₹3,874 crore from ₹3,212 crore during the same period last year.

The company has announced a dividend of ₹27 per share.

“All our product groups delivered double-digit growth, a notable feature in these past four quarters,” said the company in an exchange filing.

Further the company sees early signs of softening of commodities such as edible oils, wheat and packaging materials. However, it expects the cost of fresh milk, fuels, and green coffee to remain firm because of continued increase in demand and volatility.

Its exports were up 25% to ₹195.67 crore as against ₹156.64 crore in the corresponding quarter a year ago.

Following the results, shares of Nestle India were trading 0.12% higher at ₹20,721 apiece. Meanwhile, shares of other fast-moving consumer goods (FMCG) players were also on the rise.
Source: NSE

(With inputs from PTI)


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