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Nestle India net profit up 24.7 per cent in January-March quarter

KitKat, Munch sweeten the quarter for the firm; Nescafe also packs a punch

Nestle

Nestle

Sharleen D'Souza Mumbai

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Nestlé India’s net profit rose 24.7 per cent year-on-year (YoY) to Rs 736.6 crore in the March quarter.

The KitKat maker reported net sales of Rs 4,808.4 crore, up 21.3 per cent in the first quarter of the financial year (it follows the January-December financial year) compared to the same quarter last year.

The company said this was the highest quarterly growth in the last decade, excluding an exceptional quarter in 2016, which was off a low base in 2015.

In the March quarter, the company’s PBIDT (profit before interest, depreciation, and taxes) stood at Rs 1,129.2 crore, up 19.8 per cent from last year.

“I am pleased to share that we have continued to deliver robust sales growth this quarter, which is broad-based with a healthy balance of pricing, volume, and mix,” Suresh Narayanan, chairman and managing director, Nestlé India, said in the results release.


He added, “All our product groups delivered double-digit growth, a notable feature in these past four quarters in a row. Confectionery led by KitKat and Munch posted a strong growth, supported by consumer-led campaigns, innovation and engagement.”

Beverages saw another quarter of robust growth and market share gains led by Nescafé Classic, Nescafé Sunrise, and Nescafé Gold. Prepared dishes and cooking aids, too, delivered strong growth across all products in the portfolio. “One can discern portfolio upgradation happening in this category,” Narayanan said.

The company said that Nescafé recorded its highest-ever market share in the quarter.

Milk products and nutrition continued their strong performance led by Milkmaid, among others, he said. “I am very pleased that in line with our commitment to enable people to live healthier lives, we launched ThickenUp Clear, a food and beverage thickener from our Nestlé Health Science portfolio,” Narayanan said. The business recorded strong double-digit growth, despite commodity pressures.

The company’s out-of-home business continued to accelerate rapidly this quarter. Nestlé continued with portfolio transformation, expansion, its route to market strategy focused on relevant geographies, channel prioritisation and opening of new kiosks in key locations. The company said the channel posted strong performance and growth was secular across brands, geographies, and channels.

“Our strong performance in e-commerce continued with significant growth in quick commerce. We accelerated our sustained growth journey in Rurban (rural + urban). The growth in Rurban was complemented by strong momentum in metro and mega cities,” Narayanan said, adding, “Rural growth was also strong, secular and robust, being volume-led, which gives greater confidence and impetus to our efforts to enhance our footprint.”

Its exports business saw strong double-digit growth of product portfolio in global markets through both mainstream and ethnic channels, the company said. 
 
Also, in the organised trade, the company witnessed broad-based growth across product groups, fuelled by rapid outlet expansion.

“We are witnessing early signs of softening of commodities such as edible oils, wheat and packaging materials. However, cost of fresh milk, fuels, and green coffee are expected to remain firm because of continued increase in demand and volatility,” the company said in its outlook on commodity costs.

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First Published: Apr 25 2023 | 2:33 PM IST

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