Latest News | Nestle India Q4 Net Rises 2.25 Pc to Rs 483 Cr; Net Sales Up 9.16 Pc to 3,416 Cr

New Delhi, Feb 16 (PTI) FMCG major Nestle India Ltd on Tuesday reported a 2.25 per cent rise in net profit to Rs 483.31 crore for the fourth quarter ended December.

The company, which follows the January-December financial year, had posted a profit of Rs 472.64 crore in the same period a year ago, Nestle said in a BSE filing.

Net sales rose 9.16 per cent to Rs 3,417.52 crore during the quarter under review as against Rs 3,130.74 crore in the corresponding period last fiscal, the company said.

Nestle India's domestic sales were up 10.13 per cent to Rs 3,260.70 crore as against Rs 2,960.78 crore in October-December 2019.

Export sales dipped 7.73 per cent to Rs 156.82 crore, compared to Rs 169.96 crore earlier.

Total expenses increased 8.26 per cent to Rs 2,793.01 crore from Rs 2,579.89 crore.

"Domestic sales growth is broad-based largely driven by volume and mix. Demand in 'Out of Home' channel further improved in the quarter but continues to be impacted by COVID. Export Sales were lower by 7.7 per cent due to lower coffee exports," Nestle India said in an earnings statement.

For the full year 2020, Nestle India's net profit was up 5.79 per cent to Rs 2,082.43 crore as against Rs 1,968.44 crore in the previous year.

Net sales stood at Rs 13,290.16 crore, up 8.09 per cent from Rs 12,295.27 crore in 2019.

According to Nestle, this was led by "strong domestic sales growth, broad-based and largely driven by volume and mix."

Commenting on the annual results, Nestle India Chairman and Managing Director Suresh Narayanan said, "Nearly two-thirds of our key brands like Maggi Noodles, Kitkat and Nescafe Classic posted double-digit growth last year. 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 Nestle Health Sciences," he added.

E-commerce continued to grow and now accounts for 3.7 per cent of domestic sales, Narayanan said.

"After initial challenges due to the pandemic, the demand in Out of Home channels has continued to improve, sequentially over quarters and we remain confident of its recovery," he added.

Meanwhile, in a separate filing, Nestle India said its board at its meeting on Tuesday recommended final dividend of Rs 65 per equity share of Rs 10 each for the year 2020.

Nestle India is accelerating its actions towards reducing greenhouse gas emissions across its value chain.

"Our ambition is to achieve 100% recyclable or reusable packaging by 2025. We are working towards shaping a waste-free future and driving new behaviour," said Narayanan.

Shares of Nestle India Ltd on Tuesday settled at Rs 17,222.45 on BSE, down 1.50 per cent from its previous close.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)