Nestlé India posted a 14.6% increase in net profit to ₹602.25 crore for quarter ended March 31 from a year earlier, as in-home consumption boosted demand for key products.
The company, which follows the January-December financial year, had reported a net profit of ₹525.43 crore in January-March 2020 quarter.
Total sales rose 8.9% to ₹3,600 crore. In a statement, the company said the growth “was broad based and largely driven by volume and mix... Key products boosted by in-home consumption, posted double-digit growth”.
“Domestic sales increased by 10.2%... Export sales were lower by 12.9% due to lower exports to affiliates. Demand in Out-of-Home channel further improved... but continues to be impacted by COVID,” it added. The company declared an interim dividend of ₹25 per share.
Suresh Narayanan, chairman and managing director, Nestlé India, said, “It’s a proud moment to witness consumer trust and love for key brands like Maggi Noodles, KitKat, Nescafé Classic, Maggi Sauces, Milkmaid, Maggi Masala-ae-Magic, deliver robust performance and achieve double digit growth.”
He added that e-commerce had continued to deliver strong performance and grew by 66% to maintain its robust contribution to the domestic sales.
“While the Nestlé India family has learnt to cope with the operating volatility in the pandemic, recent sharp escalations in key raw material prices pose challenges that we will resolutely respond to, while maintaining the integrity of our business model,” Mr. Narayanan added.
He added that the company, in collaboration with authorities, is looking at setting up vaccination camps across its manufacturing locations.
