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Nestle India net up 11% in 2012

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Bs Reporter New Delhi
Last Updated : Feb 21 2013 | 1:03 AM IST
Nestle India reported an 11 per cent rise in net profit at Rs 1,068 crore during 2012 (full year), slightly lower than the Swiss food giant’s global performance. Last week, the Nestle SA had reported a 12 per cent growth in global net earnings during 2012.

The company follows a January-December period.

Nestle India reported a 11 per cent rise in net sales at Rs 8,302 crore during 2012. Domestic sales after portfolio and channel optimisation increased 11 per cent mainly, on account of net realisations and product mix.

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Sales from exports grew 7.6 per cent, mainly backed by export to third parties (37 per cent growth), but exports to affiliates dropped 12 per cent during the year.

According to a company statement, the cost of materials for goods sold as a percentage of net sales has decreased, largely due to higher sales realisations, product and channel mix partially offset by higher input costs.

During the fourth quarter ended December, Nestle India reported a 21 per cent rise in net profit at Rs 279 crore on the back of good domestic and export performance.

Its net profit stood at Rs 231 crore in the same period of 2011.

Net sales during the quarter rose to Rs 2,152.64 crore, against Rs 1,954.68 crore in the corresponding quarter of 2011.

“We anticipated the challenges and we started 2012 with caution to deliver again a steady performance by taking the challenges head on. We invested close to Rs 1,000 crore responsibly, expanding our manufacturing and distribution footprint,” said Nestle India Chairman and Managing Director A Helio Waszyk in a statement.

While the company remains cautious in the short term, it is confident of achieving sustainable and profitable growth in the future, Waszyk added

Nestle India has declared the third interim dividend of Rs 12.50 per equity share for the year 2012.

The company employs 7,000 people in India and its products are sold in 4 million outlets across the country.

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First Published: Feb 21 2013 | 12:42 AM IST

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