Nestle India Delivers Highest Growth In Q1 In Last Decade

FMCG major, Nestle India posted a strong performance of Q1 ending in March, exceeding the market estimates. It delivered the highest growth witnessed for the company in a quarter in the last 10 years. It reported an increase of 24.69 per cent in its net profit at Rs 736.64 crore for the first quarter, helped by robust volume growth and pricing.

The company, which follows the January-December financial year, had posted a net profit of Rs 590.77 crore in the same period a year ago. The company shared its quarterly numbers through securities regulatory filing on Tuesday.

As per the media release, commenting on the results, Suresh Narayanan, Chairman and Managing Director, Nestle India said, "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."

Total sales of the company was at Rs 4,808 crore, it was up by 21.3 per cent over last year's sales of Rs 3,963 and 13.58 per cent up over December sales of Rs4,233. The domestic sales rose by 21.2 per cent over last year.

Nestle India's total expenses in the January-March quarter were at Rs 3,873.76 crore, up 20.61 per cent, as against Rs 3,211.78 crore in the corresponding period. In the March quarter, Nestle India's domestic sales were up 21.18 per cent to Rs 4,612.73 crore, as against Rs 3,806.20 crore in the January-March of 2022. It's Milk Products and Nutrition registered strong double-digit growth, despite commodity pressures. While its coffee business Nescafe recorded its highest-ever market share in Q1.

Nestle India's profit from operations improved at 21.0 per cent of total sales. The profit after tax has grown to Rs 737 crore for the quarter from last year's net profit of Rs 591 crore and December's profit of Rs 628 crore.

As per the press release, on business performance Narayanan said, "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 turned in another quarter of robust growth and market share gains led by NESCAFE Classic, NESCAFE Sunrise, and NESCAFE GOLD. Prepared Dishes and Cooking Aids delivered strong growth across all products in its portfolio. One can discern portfolio upgradation happening in this category. Milk products and Nutrition continued its strong performance led by MILKMAID among others."

On the outlook, the company said it 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," said Nestle India

Lastly, the company even shared that, on 12th April, 2023, board members have declared an interim dividend for 2023 of Rs 27.0 per equity share (Face value Rs 10/- per equity share) amounting to Rs
2,603.2 million, which will be paid on and from 8th May 2023 along with the final dividend for 2022 of Rs 75.

The current market price of Nestle India Limited stock is Rs 20,692.30 per share, up by 0.13 per cent over previous day's closing while writing this copy. Its 52-week high is at Rs 21,053 per share and 52-week low is at Rs 16,000 per share. In last one year share price has surged by 13.83 per cent while in three years it has rallied by 17.79 per cent