Nestle India Q1 profit jumps 25% to Rs 736 cr, highest in a decade
Nestle is now set to pay a dividend of ₹27 per share to its shareholders next month
FMCG major Nestle India on Tuesday announced that its March quarter profit rose 24.7% year-on-year (YoY) to Rs 736 crore while total sales jumped 21.3% to Rs 4,808 crore.
The company Chairman and Managing Director Suresh Narayanan said it was the “highest growth for the company in a quarter in the last 10 years” after excluding the exceptional quarter in 2016 which was off a low base in 2015.
Nestle follows a calendar year for financial results. It will pay a dividend of ₹27 per share to its shareholders next month.
Its revenue from operations grew 21% on a year-on-year basis to Rs 4,830.5 crore, boosted by a 21.2% rise in domestic sales, according to a regulatory filing.
"All our product groups delivered double-digit growth, a notable feature in these past four quarters in a row. Confectionery led by KITKAT, and MUNCH posted strong growth, supported by consumer-led campaigns, innovation and engagement. Beverages turned in another quarter of robust growth and market share gains led by Nescafe Classic, Nescafe Sunrise, and Nescafe Gold," Narayanan said.
The company’s domestic sales, at Rs 4,612.7 crore, were driven by broad-based growth with a healthy balance of pricing, volume and mix.
The company is witnessing early signs of softening of commodities such as edible oils, wheat and packaging materials, officials said.
