Nestle Q1 2023 Result: Nestle India’s March quarter net profit jumped 24% on-year to Rs 736.6 crore, beating analyst estimates, as revenue grew beyond expectations too. A CNBC TV18 poll had predicted Nestle India to report a net profit of Rs 675 crore for January-March quarter. The FMCG firm reported the revenue for the quarter at Rs 4830 crore besting estimates of Rs 4460 crore. Nestle India had reported net profit of Rs 3980.7 crore in the same quarter a year ago. Nestle India’s EBITDA stood at Rs 1098 crore as against Rs 930.7 crore a year earlier.
Nestle has earlier this month announced an interim dividend for 2023 of Rs 27 per equity share. This will be paid on and from 8 May 2023 along with the final dividend for 2022 of 75 per equity share approved in the Annual General Meeting on April 12, 2023. Nestle India follows a January-March accounting year.
Nestle India’s growth across businesses
Nestle India’s total sales during the quarter rose by 21.3 per cent and domestic sales went up by 21.2 per cent with a healthy balance of pricing, volume and mix. Meanwhile, export sales increased by 24.9 per cent. The maker of Maggi said that the company is witnessing early signs of softening of commodities such as edible oils, wheat and packaging materials. However, the cost of fresh milk, fuels, and green coffee are expected to remain firm because of continued increase in demand and volatility, it said while announcing the quarterly results.
In terms of various retail channels, e-commerce delivered strong performance with significant growth in quick commerce; organised trade witnessed broad based growth across product groups in retail business fuelled by rapid outlet expansion; out-of-home category growth was secular across brands, geographies and channels; and exports saw double-digit growth of product portfolio in global markets through both mainstream and ethnic channels, Nestle India said in a regulatory filing.
In terms of categories, confectionery led by Kitkat and Munch posted a strong growth “supported by consumer led campaigns, innovation and engagement”. “Beverages turned in another quarter of robust growth and market share gains led by NESCAFÉ Classic, NESCAFÉ Sunrise, and NESCAFÉ GOLD,” said Suresh Narayanan. Prepared dishes and cooking aids delivered strong growth and milk products and nutrition continued its strong performance led by Milkmaid among others.