On Tuesday, food and beverages firm Nestle India recorded a 5% growth in net profit at ₹617 crores for the September quarter compared to ₹587 crores in the year-ago period. Nestle India, which follows a January to December financial year, saw its net sales rise by 9.6% to ₹3,865 crores for the reporting period. It was ₹3,525 crores in the corresponding quarter last year.
The Board announced a second interim dividend of ₹110 per share. The compensation amounts to ₹1,060 crores which will be paid on and from 16 November 2021.
“This quarter has once again seen the Company deliver ‘double‐digit broad‐based value growth’ in domestic sales across categories. Organised trade witnessed a resurgence in the third quarter with strong revenue growth in mid‐twenties after a muted second quarter which was impacted by the pandemic second wave,” said Suresh Narayanan, Chairman and Managing Director.
The company recorded domestic sales growth at 10.1% during the reporting period. The increase is broad-based and primarily motivated by volume and mix.
Meanwhile, export sales rose by 1.3% in the September quarter.
“E‐commerce channel showed strong acceleration on the back of convenience and pandemic driven consumer behaviour, fully leveraged by a team who used the power of meaningful shopper insights, data analytics, speed, flexibility, sharp communication and customisation for the channel at scale,” Narayanan said.
The price outlook for crucial categories like wheat, coffee, edible oils remains firm to bullish. Simultaneously, costs of packaging materials proceed to rise amidst supply restraints, increasing fuel and transportation costs, Nestle said in an exchange filing.
The company assumes input prices to be on a bullish trend both globally and to some extent locally. Ahead of the results, Nestle stock closed flat at 19,406.55 on NSE. So far, in 2021, the scrip has gained 5.18%.
