Nestle Q3 net up 30% to Rs 4.46 bn supported by broad-based volume growth

The company has stepped up marketing activities in order to strengthen its brands, says Nestle Chairman

FMCG major Nestle India on Friday reported a 29.99 per cent increase in net profit to Rs 4.46 billion for the third quarter ended September 2018, supported by broad-based volume growth.

The company, which follows the January-December financial year, had posted a net profit of Rs 3.43 billion for the July-September period of the previous fiscal.

Its net sales during the quarter under review were up 16.84 per cent to Rs 29.21 billion as against Rs 25 billion for the corresponding period a year ago, Nestle said in a BSE filing.

Nestle Chairman and Managing Director Suresh Narayanan said: "The quarter has witnessed another strong performance from the organization, as we continue to deliver broad based volume driven growth."
 

The company has stepped up marketing activities in order to strengthen its brands, he added.

Nestle's domestic sales rose 17.46 per cent to Rs 27.49 billion as against Rs 23.40 billion earlier.

"Total sales and domestic sales for the quarter increased by 16.8 per cent and 17.5 per cent respectively supported by broad based volume growth on a base quarter in which GST was implemented," the company said.
 

Exports also increased 7.86 per cent to Rs 1.72 billion for the quarter under review as against Rs 1.59 billion earlier.

Total expenses were at Rs 23.34 billion as against Rs 20.39 billion, up 14.48 per cent.

Over the outlook, Narayanan said: "We are witnessing headwinds in commodity and crude oil prices coupled with currency depreciation."

Shares of Nestle India closed at Rs 9,540.45 on BSE Friday, up 0.24 per cent.