Nestle India net profit down 1.37 per cent in Q2, but sales grow over 10 per cent

NEW DELHI:  FMCG major Nestle India on Friday announced that it has recorded a marginal fall in its net profit for the quarter ended September on a year-on-year basis, but witnessed an over 10 per cent increase in domestic sales. According to company executives, it also plans to invest Rs 2,600 crore over the next three to four years to augment its manufacturing capacity in the country. 

According to the firm, it saw a robust 10.23 per cent growth in domestic sales and production units have returned to “normal output” levels post the lockdown. Its net profit for the quarter stood at Rs 587.09 crore, but net sales came in at Rs 3,525.41 crore, a 10.19 per cent rise year-on-year.

Domestic sales grew 10.23 per cent to Rs 3,350.10 crore and the company also saw export sales rise 9.41 per cent to Rs 175.31 crore.

Commenting on the results, Nestle India Chairman and Managing Director Suresh Narayanan said: “The quarter witnessed growth driven by an improved supply situation, as our factories returned to normal output. As a vindication of the confidence and trust in the Nestle journey in India, I am pleased to share that we plan to invest Rs 2,600 crore over the next three to four years to augment our existing manufacturing capacities, as well as towards our new under construction factory in Sanand, Gujarat”. 

Nestle said that the quarter’s sales were boosted by double-digit growth in the home consumption of key brands such as Maggi Noodles, Maggi Sauces, Kitkat, Nestle Munch, Nescafe Classic and Nescafe Sunrise. “We continued our strong performance in the e-commerce channels, which grew by 97 per cent and now contributes about 4 per cent of domestic sales,” Narayanan. Nestle India also declared an interim dividend of Rs 135 per equity share of Rs 10.