Nestle net up only 2%

Runaway input costs ate into the profitability of Nestle India as the company recorded a mere 2.3 per cent hike in net profit for the quarter ended March 31. It stood at Rs 201.86 crore for the first quarter, as against Rs 197.30 crore in the corresponding period a year before. The company’s net sales increased 16.9 per cent to touch Rs 1,479.8 crore in the first quarter as against Rs 1,265.85 crore in the corresponding period a year before.

What aided double-digit growth in net sales was a 20.4 per cent increase in export sales for the quarter. It stood at Rs 88.9 crore as against Rs 73.9 crore in the corresponding period a year before. Domestic sales were up 16.7 per cent to touch Rs 1,390.85 crore as against Rs 1,192 crore a year before, the company said.

Consumption of raw and packing materials was up 25 per cent in the quarter, pushing up overall expenditure in the process. It stood at Rs 760 crore as against Rs 603.6 crore a year before. The company said the spike in milk, sugar and wheat prices contributed to this surge.