Nestle India Q1 net grows 13.5% to Rs 525.43 crore

FMCG major Nestle India Ltd on Tuesday reported a 13.54 per cent rise in its net profit at Rs 525.43 crore for the first quarter ended March 2020.

The company, which follows January-December as its financial year, had posted a net profit of Rs 462.74 crore in the same period a year ago.

Its net sales went up 10.84per cent to Rs 3,305.78 crore during the quarter under review, from Rs 2,982.39 crore in the corresponding three months of the last fiscal.

Our company remained resilient in the first quarter, as the numbers indicate, and delivered volume and mix led growth. MAGGI, KITKAT and Nestl MUNCH delivered strong performances," said Nestl India Chairman and Managing Director Suresh Narayanan.

Contribution from e-commerce went up significantly and commodity prices for milk and its derivates continued to be on the rise during the quarter, he added.

Nestle India's domestic sales were up 10.72 per cent at Rs 3,124.23 crore as against Rs 2,821.55 crore in January-March 2019.

Its exports rose 12.87 per cent to Rs 181.55 crore from Rs 160.84 crore in the corresponding quarter a year earlier.

Total expenses during the quarter grew 12.15 per cent to Rs 2,664.27 crore as against Rs 2,375.53 crore a year ago.

As Nestle India, we have successfully overcome many challenges and are confident that, together with all those who are fighting against this pandemic and its consequences - we shall overcome this time again," said Narayanan.

On Nestle's collaboration with various stakeholders, he said the company continues to work closely with coffee farmers, spice growers and has extended its support to numerous farmers in Karnataka by sourcing substantial quantity of tomatoes from them through its suppliers to ensure there is no distress.

Recognising the difficulties of the MSMEs during the COVID-19 pandemic, Nestle India ensured continuity in timely payments which are "inherent to our values", the Nestle India CMD said.

Moreover, every commitment to summer internships has been honoured, all young management trainees will join on time, every new employee contract respected and every employee has received their full salaries, bonuses and other benefits, claimed Narayanan.

Shares of Nestle India on Tuesday settled at Rs 17,457.25 apiece on the BSE, down 0.63 per cent from their previous close.