Nestle profit up 7 percent in March
Posts highest sales since September, 2014 backed by volume growth…
ARNAB DUTTA
New Delhi, 12 May
Food and beverages major Nestle India posted Rs 306.8 crore net profit for the quarter ended 31 March, 2017. It’s net profit surged 6.8 percent year on year (y-o-y) from Rs 287.3 crore. The firm’s consolidated net sales grew 9.1 percent to Rs 2,575.7 crore from Rs 2,360.8 crore a year ago. Its net sales during the quarter remained highest among all other quarters since September, 2014.
During the quarter, strong volume growth helped its domestic sales to surge 9.7 percent y-o-y to Rs 2,409.3 crore. Regaining market share by its flagship Maggi noodles and marginally better realisation from carry over pricing aided its topline, the firm informed the Bombay Stock Exchange today.
Its profitability, however, took a hit due to growing input costs, employee benefits expenses and excise duty. Its cost of materials went up by 17.5 percent to Rs 1,134 crore from Rs 965 crore, mostly due to rising cost of milk and milk derivatives. Employee benefit expenses grew 15.8 percent due to implementation of new compensation structure for factory workers, it said.
Commenting on the results, Suresh Narayanan, chairman and managing director, Nestle India said, “Innovation and renovation, as also volume based growth, are core business strategies outlined by Nestlé India almost 18 months back and I am pleased that this strategy is now playing an important role. We will leverage our expertise and strengths in science based nutrition and explore the areas of micronutrient fortification for our mass consumption products. We embrace the challenges of the future with its competitive intensity and rapidly changing consumer landscape, with dedication, excitement and energy.”
Yesterday, Nestle’s shareholder appointed Rama Bijapurkar as an independent non-executive director and Martin Roemkens as a whole-time director through voting. Nestle India’s stock closed 0.48 percent lower at Rs 6,819.55 in the Bombay Stock Exchange today. The firm released its results after the closing hours.