Nestle India reported results for the full year 2017. The company reported total sales of Rs 10,138 crore for the year ending on December 31, 2017 (FY2017).
The company reported profit from operations at 18.1% of sales and a net profit of Rs 1,225 crore for fiscal 2017.
The total sales and the domestic sales for fiscal 2017 increased by 7.7% and 8.2% respectively. These growth rates are adversely impacted due to lower reported sales by the change in the structure of indirect taxes and reduction in realizations to pass on the GST benefits.
Profit from operations and Net Profit in the percentage of sales for fiscal 2017 (FY 2017) are positively impacted by 60 bps and 40 bps respectively as the percentages have been calculated on lower reported sales.
For the fourth quarter of 2017 (Q4 2017), the company announced that the total sales and domestic sales for the quarter increased by 10.9% and 10.8%, respectively on a base impacted by the withdrawal of high denomination currency notes in circulation. These growth rates are adversely impacted due to lower reported sales by the change in the structure of indirect taxes and reduction in realizations to pass on the GST benefits.
Profit from operations and net profit in the percentage of sales for the fourth quarter of 2017 (Q4 2017) are positively impacted by 110 bps and 70 bps respectively as the percentages have been calculated on lower reported sales.
Commenting on the results, Mr. Suresh Narayanan, Chairman and Managing Director, Nestle India said, "It is extremely pleasing that we ended (the) year 2017 on a strong note by reaching a historic milestone of over Rs 10,000 crores in revenue, in a year where we had to adapt to significant changes in the external environment. I owe a debt of gratitude to the dedication and energy of all our employees, farmers, suppliers, shareholders and trade partners who laid the foundation of this company and ensured that the growth stayed true to its course. We renew ourselves to the values of trust and respect, and to be inspired by our purpose for the future.
Nestle is over a 105 years old in India and is building for the next 100 years. This is showcased by our continuous thrust on innovation and renovation with over fifteen products launched last year. The highlights being Maggi Nutri-licious Noodles, Milkybar Moosha, Kit Kat Dessert Delight, Milo RTD as well as new variants of Grekyo. Also, we completed 3 (three) wonderful years of the Nestle Healthy Kids Program in association with Magic Bus India Foundation which has already benefited over 150,000 adolescents.
We will continue to be responsive, committed to society, nimble-footed and an organization that lives up to its purpose of enhancing (the) quality of life and contributing to a healthier future. "