Nestlé India on Tuesday reported a 9.2 per cent rise in net profit in the January-March quarter. The firm’s net profit rose to Rs 463 crore from Rs 424 crore in the corresponding period last year.
The food and beverages major’s net sales grew 9 per cent — backed by double-digit volume growth in the domestic market — to Rs 2,983 crore from Rs 2,737 crore year-on-year.
Nestlé India’s domestic sales, which form over 90 per cent of its net sales, witnessed a 10.2 per cent rise with strong volume growth. This uplifted its finances during the quarter. However, it faced the pressure of rising input costs, said Suresh Narayanan, chairman and managing director,
Nestlé India. “We have continued on the track of volume-led growth with our iconic brands like Maggi, KitKat and Nestlé MUNCH delivering strong performances. The market momentum remained strong, while the input costs have witnessed hardening,” he said.
Further, Narayanan said Nestlé India, headquartered in Gurugram, is preparing to enter the organic food segment. “With our vision to provide exciting options rooted in nutrition, health and wellness, we will be launching organic food products in the category ‘milk products and nutrition’ in the coming months.”
Milk products and nutrition is the largest of the four product categories that Nestlé has in India, generating over 45 per cent of its annual sales.
Primarily, it sells baby food, packaged milk and value-added dairy products through some of the market leading brands like Lactogen, Cerelac and Nan Pro.