FMCG major Nestle India on Wednesday reported 8.25 per cent rise in net profit at Rs 668.34 crore for the third quarter ended September 2022, helped by a volume growth across categories.
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The company, which follows January-December financial year, had posted a net profit of Rs 617.37 crore in the same period a year ago, it said in a BSE filing.
Net sales were up 18.24 per cent to Rs 4,591 crore during the period under review as against Rs 3,882.57 crore in the year-ago period, the company said.
It has “witnessed the highest sales growth during a quarter in the last five years,” said an earning statement from the company.
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Nestle India Chairman and Managing Director Suresh Narayanan said this achievement has been “on continued strong volume and mix evolution with broad-based double-digit growth” across all categories.
“Growth has been very strong in the large metros and mega cities and continued to be robust across smaller town classes, including rural markets,” he said.
Total expenses in September quarter were at Rs 3,715.40 crore as against Rs 3,081.99 crore in the year-ago period.
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Domestic sales were up 18.27 per cent to Rs 4,361.15 crore as compared to Rs 3,687.37 crore in the year-ago period.
The “domestic sales growth is broad-based with a healthy balance of pricing and volume,” said Nestle.
During the quarter, e-commerce channel contributed 7.2 per cent of Nestle India’s sales. This was largely fuelled by new, emerging formats such as ‘quick commerce’ and ‘click & mortar’, it added.
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Its exports were up 15.68 per cent to Rs 205.45 crore as compared to the year-ago period.
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The increase in exports was led by the “proliferation of Indian product portfolio in new markets and expanding new categories, especially wider offerings in MAGGI and confectionery remains a key focus,” it said.
Commenting on commodity outlook in the short to medium term, Nestle India said: “We are witnessing early signs of stability in prices of a few commodities such as edible oils and packaging materials.
“However, fresh milk, fuels, grains and green coffee costs are expected to remain firm with the continued increase in demand and volatility,” it added.
Meanwhile, in a separate filing, Nestle India informed that its board, in a meeting held on Wednesday, declared a second interim dividend of Rs 120 per equity share of Rs 10 each for 2022.
Shares of Nestle India were trading 1.62 per cent up at Rs 19,700 apiece on the BSE.
