Nestle India net dips 6.7 per cent

Foods and beverage major Nestle India today reported a 6.7 per cent fall in net profit at Rs 112.92 crore for the fourth quarter ended December 2009, due to increase in raw material costs. Last year, it was Rs 121.09 crore.

However, net sales rose 24 per cent to Rs 1,351.8 crore from Rs 1,090.1 crore in the year-ago period.

For the full year, net profit grew 22.64 per cent to Rs 655 crore, from Rs 534.08 crore in the previous year. Net sales stood at Rs 5,129.38 crore, compared to Rs 4,324.24 crore last year.

Nestle attributed the increase in net sales for the full year to an increase in volumes, as well as realisations. However, exports were down by 2.9 per cent on account of lower sales to Russia and Bangladesh, partly offset by improved realisations due to a weaker rupee during most of the year.

According to the company, improved operating margins were because of a better sales mix, improved net realisations and sales efficiencies.

However, it said the operating margins were partially offset by higher expenditure on advertising and sales promotion and actuarial losses on retirement benefits.

Antonio Helio Waszyk, chairman and managing director of Nestle India, said, “Growth creates value for society and I am pleased that we are delivering strong financial performance in a sustained manner for many years.”

“We will leverage our local strengths and global capabilities, and as the economy continues to revive, we will further delight customers and consumers and increase prosperity.”