The FMCG major's net profit rose 5.16% to Rs 617.37 crore on 9.63% increase in net sales to Rs 3,864.97 crore in Q3 September 2021 over Q3 September 2020.The company's profit before tax (PBT) rose 6.07% to Rs 834.24 crore in Q3 September 2021 over Q3 September 2020.
Domestic sales for the quarter increased by 10.1%. The growth is broad based and largely driven by volume and mix. Export sales increased by 1.3%.
In overall terms, the third quarter saw strong high single digit volume & mix growth in domestic sales, the company said.
Suresh Narayanan, chairman and managing director, NestlIndia commented, "This quarter has once again seen the company deliver 'double-digit broad-based value growth' in domestic sales across categories. Organized trade witnessed a resurgence in the third quarter with strong revenue growth in mid-twenties after a muted second quarter which was impacted by the pandemic second wave. E-commerce channel showed strong acceleration on the back of convenience and pandemic driven consumer behaviour. Nestle India continued its path of robust and sustained double digit growth in not just the large metros, but also 'small town Bharat'."
Nestle said that price outlook for key categories like wheat, coffee, edible oils remains firm to bullish while costs of packaging materials continue to increase amid supply constraints, rising fuel and transportation costs. Input prices are expected to be on bullish trend both globally and to some extent locally. Fresh milk prices are expected to remain firm with continued increase in demand and rise in feed costs to farmers. The recent announcement of scrapping import duties on edible oils, if continued next year, beyond March 2022, can have positive impact in muting food inflation pressures. The company said that it continues to, in an environment of raw and packaging material inflation, keenly look for opportunities for cost optimisation and efficiencies.
The board has declared second interim dividend of Rs 110 per equity share, which will be paid on and from 16 November 2021.
Nestle India is a subsidiary of Nestle S.A. of Switzerland. It has presence across India with 8 manufacturing facilities and 4 branch offices.
Shares of Nestle India fell 0.26% to settle at Rs 19,377.50 on Tuesday.
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