Revenue rose 9% to Rs 5,268 crore from Rs 4,831 crore a year earlier, the FMCG major said in a regulatory filing. The Indian arm of the Swiss food giant Nestle said its board recommended final dividend of Rs 8.5 per equity share of Re 1 face value.
Nestle said it will launch Nespresso in India by the end of 2024 and it will sell and distribute Nespresso products (machines and capsules) through its network, online channels, and boutiques.
Nestle India on April 25 reported a standalone net profit of Rs 934 crore in March quarter, up 27% from Rs 737 crore a year ago.
A poll of seven brokerages estimated a net profit of Rs 856 crore, up 22 percent from the previous year and 17.8 percent from the December quarter.
Nestle India signed a MoU with Dr Reddy’s Laboratories to bring together global range of nutritional health solutions, vitamins, minerals and health supplements of Nestlé Health Science. The joint venture is expected to become operational in the 2nd quarter of the FY 2024-25.
“I am pleased to share that we have delivered double-digit growth, despite challenges posed by rising food inflation and volatile commodity prices. We have witnessed a strong growth momentum across our product portfolio led by a combination of pricing and mix,” said Suresh Narayanan, Chairman and Managing Director, Nestlé India. India is Nestle’s largest market for its Maggi noodles.
In the fiscal year ending March 31, 2024, Nestlé India witnessed notable achievements across various segments. Confectionery, driven by the success of KITKAT, propelled India to become the second-largest market globally for the brand. The Beverages business also demonstrated strong performance, with NESCAFÉ reaching over 30 million households in India over the past seven years. Despite inflationary pressures, Milk Products and Nutrition saw robust growth. Prepared Dishes and Cooking Aids, particularly MAGGI Noodles and MAGGI Masala-ae-Magic, experienced significant growth, leading India to emerge as the largest market for MAGGI worldwide.
Additionally, the Out-of-Home business reported impressive growth, and e-commerce continued its upward trajectory, contributing to 6.8% of total sales. Nestlé India remained committed to its RUrban initiative, expanding to encompass over 200,000 villages, marking a significant milestone. The company’s growth strategy focuses on exploring new platforms and categories, aligning with evolving market trends and consumer preferences. By leveraging existing strengths and investing in new opportunities, Nestlé India aims to create long-term value for its stakeholders.
Following the earnings, shares of Nestle were trading at Rs 2,513 apiece, up 0.4%.
Looking ahead, Nestle India said commodity prices, including that of coffee and cocoa, are soaring, with milk prices expected to add to its problems by increasing during the harsh summer months in the country.
Earlier in the day, parent Nestle SA missed first-quarter organic sales growth estimates as it raised prices and sold fewer products.
