Nestle India’s net profit up 36.8% in June quarter to ₹698 crore

• Nestle India’s domestic sales grew 14.6% on the back of prudent pricing, and targeted brand support.
• Its raw material costs have come down by 9.3% on a quarter-on-quarter basis.
• The e-commerce channel contributed to 6.5% of the quarterly sales, driven by momentum in quick commerce.

FMCG major Nestle India posted a 36.8% growth in net profit to ₹698 crore in the June quarter as compared to ₹510 crore in the same quarter last year. Its total sales grew by 15% to ₹4,658 crore as compared to ₹4,045 in the corresponding quarter.

The company said that its domestic sales growth is broad based and grew by 14.6%, on the back of prudent pricing, supported by mix and volume with targeted brand support. Even as its raw material costs remained 7% higher on a YoY basis, it came down sequentially by 9.3% — due to the softening of commodity prices.

“Commodities such as edible oils, wheat and packaging materials have been in the lower price range. A reversal of price trend is noted in fuels with prices softening in the second quarter after reaching a higher level towards the end of quarter one. In fresh milk, there has been price stability. Robusta prices are elevated and are expected to remain volatile,” the company said in a media release.

Its top brands like Kitkat, Nescafe and Maggi performed well, the company said. "I am pleased to share that we have, yet again, delivered robust performance, with all product groups registering double digit growth. This is the fifth quarter in a row of double-digit growth across all product groups,” said Suresh Narayanan, chairman and MD of Nestle India.

The company’s prepared dishes and cooking aids registered double-digit growth driven by Maggi noodles. Its milk products and nutrition business also delivered double-digit growth despite inflationary pressures, and growth was driven by Milkmaid and Peptamen.

The good performance in Kitkat and Munch performance was supported by consumer engagement and media campaigns.

Its beverages portfolio also grew on the back of greater household penetration Nescafe Classic, Nescafe Sunrise and Nescafe Gold.

Nestle India sells 6.5% via e-commerce

The e-commerce channel contributed to 6.5% of the quarterly sales and continued the growth momentum driven by quick commerce.

The company’s Out of Home (OOH) business continued to deliver robust growth through premiumisation and portfolio transformation initiatives. “Strong performance is an outcome of kiosk expansion and prioritization of emerging channels,” the company said in a media release.

Exports registered a robust double-digit growth across all categories through proliferation of products such as Nescafe Sunrise and Polo.