Nestle India January-March 2024 Results: Kit Kat chocolate maker beats analysts' expectations with 27% jump in net profit

Nestle India January -March 2024 Results: Consumer products company Nestle India on Thursday reported a 26.8 per cent year-on-year increase in consolidated net profit of Rs 934.2 crore for the January-March period.

Its revenue grew 9.0 per cent to Rs 5,267.6 crore for the March quarter, according to a regulatory filing.  

The quarterly performance of Gurugram-headquartered Nestle India—whose popular brands include Maggi, Milkybar, Kit Kat, Nescafe and Milkmaid—was better than analysts' expectations.

According to Zee Business research, Nestle India's March-quarter consolidated net profit was estimated at Rs 894 crore and revenue at Rs 4,965 crore. 

The consumer products company declared a dividend of Rs 8.5 per share.   

Nestle India changed its financial year from January-December to April-March, by extending the last financial year up to March 31 covering a period of 15 months. 

“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, Nestle India. 

"Our domestic sales crossed Rs 5,000 crore this quarter, a notable milestone for us. I would like to extend my heartfelt gratitude to my colleagues, distributors, retailers and partners for their unwavering dedication, determination, and diligence," Narayanan added.

The company said its confectionery business delivered a strong performance in the financial year ended March 31, driven by Kit Kat, making India the second-largest market for the brand globally.  

Nestle India signed a definitive agreement to form a joint venture with Dr Reddy’s Laboratories, wherein the pharmaceutical company will hold a 51 per cent stake while the remaining 49 per cent will be with the consumer products firm.

"We have been on a journey where we strive to add value to the lives of our consumers through powerful brands and products. This joint venture is another important step in that direction, allowing us to bring our science-backed nutritional solutions to more consumers across the country by leveraging Dr Reddy’s robust retail and distribution network," Nestle India said.

Nestle India said NESPRESSO coffees and machines will soon be available for consumers, coffee aficionados and coffee connoisseurs in India. For Nestle, India is one of the fastest-growing coffee markets with coffee consumption in the country having surge in the recent years, it said.

The company intends to open its first NESPRESSO boutique in Delhi before expanding to other key cities. NESPRESSO will also be sold online through e-commerce platforms, it added. 

Nestle India shares briefly traded in red territory minutes after the earnings announcement. At 12:50 pm, the stock was back in the green, up 0.3 per cent for the day at Rs 2,509.6 apiece on BSE.

In January, Nestle India split each of its shares of the face value of Rs 10 apiece into 10 equity shares of the face value of Re 1 apiece. Read more on Nestle India share split

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