Q4 Results: Nestle India’s Sales Meets Estimates Led By Higher Volumes
Nestlé India’s quarterly sales met estimates on the back of higher volume growth and new launches.
Net sales rose 11.4 percent year-on-year to Rs 2,897 crore in the three months ended December, the maker of Maggi noodles and Kit-Kat chocolates said in an exchange filing. That’s in line with the Rs 2,917 crore consensus estimate of analysts tracked by Bloomberg.
The company’s net profit rose 9.6 percent over the last year to Rs 342 crore during the period. The bottom line, however, missed the Rs 465-crore estimate.
Its earnings before interest, depreciation, tax and amortisation margin stood at 19 percent compared with 20.5 percent a year ago—lower than the 25 percent estimate. That’s because of a 31 percent increase in other expenses.
The company has delivered profitable growth during the quarter, led by strong volumes, according to Suresh Narayanan, chairman and managing director of Nestle India. It has reported double-digit growth in almost all categories, supported by new products, he said in a statement.
Last year, Nestlé launched new products such as Nescafé Ready-to-Drink Cans, NesPlus (a range of breakfast cereals), Maggi Nutri-licious Baked Noodles, Maggi Dip & Spread, Nescafé E-Smart Coffee Machine (all-in-one travel mug and coffee machine) and Everyday Chai Life (instant tea mix).
The company’s domestic sales during the fourth quarter rose 12 percent from last year to Rs 2,690 crore, while revenue from exports remained flat at Rs 188 crore. Other expenses stood at Rs 809 crore compared with Rs 617 crore a year ago.
The board of directors also recommended a dividend of Rs 25 apiece.