Nestle India turnover crosses Rs 5,000 crore in a quarter in a first

Nestlé India on Thursday reported net profit worth Rs 908.1 crore for the quarter ended September 30, 2023 — beating Bloomberg estimates of Rs 785.3 crore — riding on higher demand for its KitKat and Munch chocolates, as well as Nescafé coffee.
 

The company's net sales rose 9.4 per cent to hit Rs 5,009.5 crore from Rs 4,577.4 crore in the same period last year.
 

The maker of Maggi instant noodles reported profit before interest, depreciation and tax (PBIDT) which was up 31.9 per cent in the quarter at Rs 1,364.6 crore. Compared to the April-June quarter, it was up 26.4 per cent.
 

“We crossed Rs 5,000 crore turnover, which has been our first in any quarter in the history of the company and a landmark for us,” said Suresh Narayanan, chairman and managing director, Nestlé India.
 

The Board also approved altering the company's share capital "by sub-division/split of existing equity shares having face value of Rs 10 each, fully paid up, into 10 (ten) equity shares having face value of Rs 1 each fully paid-up, subject to the approval of members of the company," it said in an exchange filing.
 

The board also declared a second interim dividend of Rs 140 per share for 2023, amounting to Rs 1,349.82 crore, which will be paid on and from November 16, 2023.

“Our rurban (rural + urban) strategy remained focussed on deepening our reach in under penetrated small towns and large villages. We continue to widen and customise our rurban portfolio by introducing products, which cater to specific local requirements,” he said.
 

The company’s domestic sales for the quarter increased by 10.3 per cent to touch Rs 4,823.72 crore.
 

 “Domestic sales grew double digit, on account of mix, volume and price. Key brands continued to perform well, led by KitKat, Nescafé Classic, Nescafé Sunrise, supported by Munch and Milkmaid,” the company release said.
 

The company’s e-commerce channel contributed to 6.1 per cent of the quarterly sales, while the out-of-home business registered strong double-digit volume led growth.