FMCG giant Nestle India Ltd. announced on Wednesday that its net profit for the quarter ended December 31 increased by 4.38 percent to Rs 655.61 crore. In the same period last year, the business reported a profit of Rs 628.06 crore, according to a regulatory filing from Nestle India.
Nestle India's net increased by 8.27% to Rs 4,583.63 crore over the reviewed period. It stood at Rs 4,233.27 crore during the same time frame in the previous fiscal year. Its total expenses increased to Rs 3,636.94 crore in the December quarter, a 6.11 percent increase. Domestic sales for Nestle India increased 8.86% to Rs 4,421.79 crore from Rs 4,061.85 crore in the October–December quarter of the previous fiscal year.
"Due to increases in pricing and mix, as well as strong growth momentum in e-commerce and out-of-home channels, domestic sales increased by 8.9%. All product segments saw a rise in brand investments during the quarter, according to Suresh Narayanan, Managing Director and Chairman of Nestle India. But compared to the same quarter last year, when its exports were worth Rs 171.42 crore, they were only worth Rs 161.84 crore, a 5.58 percent decrease.
The operating income of Nestle India increased by 8.07 percent to Rs 4,600.42 crore. It stood at Rs 4,256.79 crore during the previous fiscal year's December quarter. Nestle India, which had previously adopted a January–December fiscal year, has authorized a shift to a fiscal year that began on April 1 and ended on March 31 of the following year.
"Consequently, as a transitional arrangement, the current financial year of the company will be for a period of 15 months commencing January 1, 2023, and ending March 31, 2024, while the previous financial year was 12 months, from January 1, 2022, to December 31, 2022," it stated.
Additionally, it stated that the audited results for the preceding fiscal year's 12-month period ending December 31, 2023, are likewise equivalent numbers. Nestle India's earnings increased to Rs 2,998.67 crore in 2023, a 25.44 percent increase. A year ago, it was worth Rs 2,390.52 crore. In a similar vein, Nestle India's product sales income increased 13.3% to Rs 19,021.05 crore in 2023.
"During the year 2023, our total sales grew by over 13.3 percent and we crossed Rs 19,000 crore mark," Narayanan stated. On Wednesday, the board of the business approved the slump sale of the company's Nestle Business Services ('NBS') Division for an amount totaling Rs 79.8 crore to Purina PetCare India, a 100% subsidiary of Nestle SA.
"The transaction shall be effective from July 1, 2024, subject to customary closing conditions," added the statement. On the BSE, Nestle India's shares were trading at Rs 2,491.55 a share, up 1.37% from the previous close.
