Nestle India Q1 results: FMCG major witnesses fall in profit; announces Rs 25 per share dividend

Nestlé India reported a net profit of Rs 595 crore in the quarter ended March, 2022, the company said on Thursday. This is a fall of 1.25% on year-on-year basis when compared to Rs 602.25 crore in the same quarter last year. 

However, Nestle India''s net sales increased 9.74 per cent to Rs 3,950.90 crore during the quarter against Rs 3,600.20 crore in the corresponding period last fiscal, the company said in a regulatory filing.

The Board of Directors of Nestlé India also announced an interim dividend for 2022 of Rs 25  per equity share, which will be paid on and from 6 May 2022 along with the final dividend for 2021 of INR 65.0 per equity share approved in the Annual General Meeting on April 12, 2022. 

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“I am pleased to share that in this quarter we have delivered double-digit domestic sales driven by volume and mix, which once again demonstrates the strength of our brands, consumer resonance and the resilience of the Nestlé India team and our partners. Our key brands continue to perform well with Maggi Noodles, KitKat, Nestlé Munch, Nescafé Classic and Sunrise posting creditable double-digit growth in this quarter," said Suresh Narayanan, Chairman and Managing Director, Nestlé India.  

This growth across a range of categories was enabled by a mix of innovative campaigns, attractive consumer promotions, analytics-based consumer insights, geo-targeted distribution drives and leveraging the opportunity of festive seasons. Our endeavour is to continue on the path of penetration led volume growth with determination, he added.

Meanwhile, Nestle India's total expenses in the January-March quarter rose 12.98 per cent to Rs 3,195.90 crore compared to Rs 2,828.61 crore a year ago.

Nestle India's domestic sales surged 10.23 per cent to Rs 3,794.26 crore from Rs 3,442.03 crore in the January-March quarter of 2021.

Its exports were marginally down by 0.96 per cent at Rs 156.64 crore against Rs 158.17 crore in the year-ago quarter.