Nestle India Q3 Results: Revenue Rises 9.6% On Out-Of-Home Consumption, Profit Up 5.2%
Nestle India Ltd.’s quarterly profit and revenue rose as demand for out-of-home consumption categories and ready-to-eat products begins to revive.
Revenue jumped 9.6% quarter-on-quarter to Rs 3,882.6 crore, according to its exchange filing. That compares with the Rs 3,890.8-crore consensus of analyst forecasts complied by Bloomberg.
Domestic sales rose 10.1% against 10.2% a year earlier and 13.7% in the preceding quarter.
Net profit of the maker of Maggi instant noodles and Kit Kat chocolate, which follows calendar-year financial reporting, rose 5.2% over the preceding quarter to Rs 617.4 crore in the three months ended September. That compares with the Rs 634.2-crore estimate.
"OOH channel is on a recovery path with gradual opening of hotels, restaurants, offices and malls," the company said in a statement. "There are signs of a return to pre‐pandemic levels of business traction in some geographies, categories and channels."
"This quarter has once again seen the company deliver ‘double‐digit broad‐based value growth’ in domestic sales across categories," Suresh Narayanan, chairman and managing director of Nestle India, was quoted as saying in a statement.
"Organised trade witnessed a resurgence in the third quarter with strong revenue growth in mid‐20s after a muted second quarter which was impacted by the pandemic second wave," he said. "The e‐commerce channel showed strong acceleration on the back of convenience and pandemic driven consumer behaviour ..."
Other Highlights (QoQ)
Operating profit rose 7.3% to Rs 948 crore sequentially, compared with the estimated Rs 957.1 crore.
Margin came in at 24.4% versus 24.9% amid rising commodity prices across oils and packaging materials.
Total sales stood at Rs 3,865 crore, while exports grew 1.3%
All power brands Kit Kat, Munch and Milkybar registered high double-digit growth.
In the short to medium term, the price outlook for key categories like wheat, coffee, edible oils remains firm to bullish, while costs of packaging materials continue to increase amid supply constraints, rising fuel and transportation costs.
Fresh milk prices are expected to remain firm with continued increase in demand and a rise in feed costs to farmers.
Shares of Nestle India ended largely flat before the results were announced compared to a largely unchanged Sensex. The packaged food company's stock has risen 5.2% so far this year.
