Nestle India Q1 Results: Net Profit Up 15% On Higher Domestic Sales

Nestle India Ltd.’s quarterly profit and revenue rose on the back of double-digit domestic sales growth in the quarter-ended March.

Net profit of the maker of Maggi instant noodles and Nescafé coffee—which follows the calendar year as its financial year—rose 15% over the preceding year to Rs 602.2 crore in the three months March, according to its exchange filing. That compares with the Rs 577.1-crore consensus estimate of analysts tracked by Bloomberg.

Revenue rose 9% year-on-year to Rs 3,610.8 crore, against the Rs 3,636.5-crore forecast. Domestic sales rose 10.2% against 10.7% in the corresponding quarter last year.

Other Highlights (YoY)

• Operating profit rose 17% to Rs 929.80 crore, compared with the estimated Rs 902.6 crore.

• Margin expanded 25.8% vs 23.9%.

• E‐commerce channel sales grew by 66%, contributing 3.8% of domestic sales.

• Exports fell 12.9% over lower sales to affiliates.

• Demand in out-of-home channel improved, but remains impacted by Covid-19.

“While the company has learnt to cope with operating volatility in the pandemic, recent sharp escalations in key raw material prices pose challenges that we’ll resolutely respond to, while maintaining the integrity of our business model,” Suresh Narayanan, chairman and managing director of Nestle India, was quoted as saying in a statement.

The company declared an interim dividend of Rs 25 per share for this year, which will be paid on May 19, along with the final dividend for 2020.