Nestle India on Wednesday posted a decline of 8.6% in net profit at ₹167.31 crore for the fourth quarter ended December 31, 2016 due to demonestisation.
“Net domestic sales increased by 16.9% and export sales increased by 7.9%. Net domestic sales for the quarter has been impacted by the withdrawal of high denomination currency notes in circulation,” Nestle said.
The company, which follows January-December financial year, had reported a net profit of ₹183.19 crore during the October-December 2015 quarter.
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The company said the results for the quarter and full year ended December 31, 2016 are not entirely comparable with the results of the corresponding year-earlier periods “due to Maggi Noodles issue in 2015 and rebuild of the Maggi Noodles business in 2016.”
Net sales for the quarter under review was up 16.17% “on a base impacted by Maggi Noodles issue” to ₹2,261.28 crore compared to ₹1,946.44 crore in the year-earlier period, according to a statement from the company.
“The year saw Nestle India’s single minded commitment to build back Maggi Noodles…we are now back to market leadership in the noodles category with close to 60% market share,” said Suresh Narayanan, CMD, Nestle India.
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Net Sales for the full year stood at ₹9,159 crore, up 12.7% from ₹8,123.2 crore on a base impacted by Maggi Noodles issue. Net domestic sales for the year increased by 13.5% while export sales were up 3.5%.
The Board of Directors have recommended a final dividend of ₹23 per equity share for 2016. This is in addition to the three interim dividends of ₹12 per equity share paid on May 31, 2016, ₹12 per equity share paid on August 19, 2016 and ₹16 per equity share paid on December 22, 2016. The total dividend per equity share in 2016 aggregates to ₹63 per share.