Net profit stood at Rs 386 crore in the same period last quarter, after an impact of Rs 236.5 crore exceptional loss
Maggi and Kitkat maker Nestle India posted a 62 percent year-on-year jump in its net profit at Rs 628 crore for the October-December 2022 quarter.
Net profit stood at Rs 386 crore in the same period last year, after an impact of Rs 236.5 crore exceptional loss.
Meanwhile, revenue for operations for the December quarter has jumped 13.8 percent YoY to Rs 4,257 crore from Rs 3,739.3 crore a year-ago. On the operating front, EBITDA (earnings before interest, taxes, depreciation and amortization) came in at Rs 982 crore, higher by 15.4 percent.
Operating margins improved to 23 percent from 22.8 percent YoY.
Both topline and bottomline numbers have met Street expectations of Rs 4,395 crore and Rs 611 crore. The stock zoomed after Q4 numbers were released. At 12:20 pm, the stock was quoting at Rs 19,708 on the NSE, higher by 2.32 percent.
Along with the Q3 numbers, Nestle India’s board of directors approved a final dividend of Rs 75 per equity share of Rs 10 each for the year 2022.
“We delivered our highest double‐digit growth in a decade led by sustained volume and mix led growth, leading to a strong value growth. In 2022 total sales grew by 14.5 percent and domestic sales increased by 14.8 percent, with broad based performance across all categories,” Suresh Narayanan, chairman and managing director, Nestlé India said.
For the full calendar year 2022, the company reported sales of Rs 16,790 crore and profit of Rs 2,390 crore. Earnings per share came in at Rs 247.9, with market share gains in confectionary products.
“Out‐of‐home (OOH) business made a strong comeback in 2022, recovering its pre‐Covid base and delivering robust growth. With our ‘direct to consumer’ (D2C) platform, products manufactured by the company are now available in Delhi – NCR,” Narayanan added.
During the quarter, the company also strengthened its RURBAN approach by increasing distribution points and going deeper into smaller towns and cities.
Its R&D centre has signed an MOU (memorandum of understanding) with Nutrihub, ICAR‐Institute of Millet Research with the aim of collaborating in areas such as millet processing, as per the earnings press release.
Commodity outlook in short to medium term
The company said that prices of cereals, grains and coffee continues to be at a 10‐year high. Fresh milk prices also remain firm due to Lumpy Skin Disease in H2’22 and rise in feed costs to farmers.
“With some respite in crude oil, input materials such as packaging have witnessed relief. Demand continues to be robust with domestic outlook of prices evolving because of supply and weather conditions,” it noted.
