Nestle India Q1 results: Net profit jumps 24.7% to Rs 736.6 crore, exceeds Street estimates

Nestle India Q1 results: Nestle India — which manufactures instant noodles Maggi — reported a net profit of Rs 736.6 crore for the quarter ended March 2023, marking a jump of 24.7 per cent compared with the corresponding period a year ago. Nestle India shares returned to the green after initially succumbing to selling pressure minutes after the earnings announcement. 

Its revenue from operations grew 21 per cent on a year-on-year basis to Rs 4,830.5 crore, boosted by a 21.2 per cent rise in domestic sales, according to a regulatory filing.

According to Zee Business research, Nestle India's quarterly net profit was pegged at Rs 677 crore and at Rs 4,413 crore. 

Nestle India said its domestic sales, at Rs 4,612.7 crore, were driven by broad-based growth with a healthy balance of pricing, volume and mix.

Total product sales increased 21.3 per cent to Rs 4,808.4 crore, according to the filing. 

"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 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," said  Suresh Narayanan, Chairman and Managing Director, Nestle India. 

Nestle India — whose popular brands include Nescafe gold, Nestea, KitKat, Munch, Mulkybar and EveryDay — said its growth was the highest in a quarter in the past decade. The company also said it is witnessing "early signs of softening of commodities such as edible oils, wheat and packaging materials".

However, it expects the cost of fresh milk, fuels and green coffee to remain firm because of a continued increase in demand and volatility. 

Nestle India dividend

Nestle India's board had earlier announced an interim dividend of Rs 27 per share for 2023, to be paid on or after May 8 along with a final dividend of Rs 75 per share for the previous year. Read more on biggest dividend-paying firms of 2023

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