Nestle India Q4 Results: Profit And Revenue Miss Estimates
Nestle India Ltd.’s quarterly profit and revenue rose as demand rose after the nation eased lockdown curbs, but missed estimates.
Net profit of the maker of Maggi instant noodles and Nescafe coffee—which follows the calendar year as its financial year—rose 2% over the preceding year to Rs 483.3 crore in the quarter ended December, according to its exchange filing. That compares with the Rs 563.4-crore consensus estimate of analysts tracked by Bloomberg.
Revenue rose 9% year-on-year to Rs 3,432.6 crore, against the Rs 3,510.2-crore forecast.
Other Highlights (YoY)
- Operating profit rose 12% to Rs 777 crore, compared with the estimated Rs 848.4 crore.
- Margin expanded 22.6% vs 22%.
Nestle India’s sales rose 10.1% over a year ago to Rs 3,260.7 crore, while exports declined 7% to Rs 156.8 crore.
- Innovation and renovation pipeline continues to be a thrust area.
- Demand in out-of-home channels continued to improve.
- E-commerce grew by 111% and now contributes 3.7% of domestic sales.
“Nearly two thirds of our key brands like Maggi Noodles, Kitkat and Nescafe Classic posted double digit growth last year,” Suresh Narayanan, chairman and managing director of Nestle India, was quoted as saying in a statement. “This was backed by a step-up in marketing spends, especially in the last quarter. Our innovation and renovation pipeline continued to be a thrust area across categories like foods, breakfast cereals and Nestlé Health Sciences.”
Narayanan said the company built “resilience” in milk suppliers and small businesses that deal with the company by ensuring timely payments and in some cases buying beyond its needs.
Demand for out-of-home channels has improved over the quarters and the company remains confident of recovery, he said.
Among fast-moving consumer goods makers, Hindustan Unilever Ltd., the country’s largest, reported a 4% volume growth in the quarter under review. Its net profit and revenue also rose. Marico Ltd., too, posted 15% volume growth in its India business during the same period. While cost cuts aided Britannia Industries Ltd., ITC Ltd.’s revenue from the remaining FMCG business rose.
Shares of Nestle India closed 1.6% lower before the results were announced, compared with benchmark Nifty 50 which ended largely flat.