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Nestle India posts 6% rise in Q3 net profit at ₹696 crore

Nestle India posts 6% rise in Q3 net profit at ₹696 crore


Nestle India posted a net profit of ₹696.13 crore for the December quarter, up 6.2 per cent compared to the corresponding quarter of the previous fiscal year. Revenue from operations stood at ₹4,779.73 crore, up 3.89 per cent. The packaged food major said total sales grew by 3.9 per cent, while domestic sales grew by 3.3 per cent in the quarter under review.

Suresh Narayanan, Chairman and Managing Director of Nestle India, stated, “This quarter, 3 out of 4 product groups delivered healthy growth, led by a combination of pricing and volume. Key brands continue to perform, and this augurs well in a challenging environment. It was a quarter marked by food inflation, moderation in urban consumption, and gradual recovery in rural consumption.”

“Our manufacturing capacity will witness a significant jump with the commissioning of the third confectionery unit at the Sanand factory to manufacture KitKat, as part of our ambition to achieve ₹5,800 crore in capital expenditure between 2020-2025,” he added.

Narayanan pointed out that the company has enhanced its distribution reach in the past 12 months. “The Rurban strategy continues to enhance our footprint. This is an essential element of the ‘penetration-led growth’ strategy and has resulted in the maximum contribution to the expansion of our distribution reach,” he added.

The company noted that out-of-home was its fastest-growing business, driven by “continued portfolio transformation and premiumisation, robust customer acquisition, and geographical expansion beyond metros and mega cities.” It has expanded its presence with Nestle Retail One Kiosks to over 940 locations across colleges, hospitals, and tourist hotspots. The e-commerce segment’s acceleration was aided by quick commerce, consumer acquisition, festival activation, and premiumisation.

“Our out-of-home business reported strong double-digit growth with significant acceleration in the food & beverage solutions portfolio. E-commerce continued its path of acceleration, posting high double-digit growth and contributing 9.1 per cent to domestic sales. New products launched since 2015 now contribute to approximately 7 per cent of sales,” Narayanan said.

The company also said that the first Nespresso boutique is set to open in Delhi and will be expanded to major cities.

“Commodity prices continue to be firm for coffee, cocoa, and cereals and grains. Prices of edible oil have stabilised. Prices continue to remain stable for milk and packaging,” Nestle India stated.

While the powdered and liquid beverage category witnessed “robust growth” led by the Nescafe portfolio, the confectionery segment registered high single-digit growth in the quarter. “Prepared Dishes and Cooking Aids posted high single-digit growth, led by Maggi noodles, which returned to credible volume growth, and Masala-e-Magic, which has had strong and consistent growth. In the Nutrition business, products for toddlers’ milk and specific nutritional needs continued to deliver strong performance. The Petcare business witnessed the highest growth this quarter since its integration into the Nestle India business in 2022. Particularly noteworthy is the performance of ‘Felix’, a premium cat food brand,” Narayanan stated.





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