The FMCG major's standalone net profit rose 10.7% to Rs 538.58 crore on a 13.8% rise in net sales to Rs 3,462.35 crore in Q2 June 2021 over Q2 June 2020.
Standalone profit before tax rose 12% to Rs 730.49 crore in Q2 June 2021 as against Rs 652.27 crore in Q2 June 2020. The Q2 earnings was declared post market hours yesterday, 28 July 2021.
Total sales and domestic sales for the quarter rose 13.8% Y-o-Y (year-on-year) and 13.7% Y-o-Y respectively, on a base impacted by COVID-19 induced lockdown with production disruptions across factories. Domestic sales growth was driven by volume & mix. Export sales jumped 17.7% due to timing of exports to affiliates.
Domestic and Export Sales achieved double digit growth largely driven by volume & mix. Key products Maggi Noodles, Kitkat, NestlMunch, Maggi Sauces, Maggi Masala-Ae-Magic posted strong double-digit growth. E-Commerce channels grew 105% and contributed 6.4% of domestic sales. In recent times, commodity prices have been rising across oils and packaging materials.
Suresh Narayanan, Chairman & Managing Director, Nestle India, said in a statement, the company's efforts to ensure last-mile access during the second pandemic wave was aided by e-commerce and in particular hyperlocal channels which grew 147% in the first half of the year. Last year, our commitment to India made us articulate an ambition to invest ₹2,600 crore over a 3-4-year period. I am pleased to announce that out of this, we have already invested about ₹1,000 crore thus far. This is a vindication of our confidence and trust in the Nestle journey in India, he added.
The board has considered and approved a scheme of arrangement between the company and its members under Section 230 of the Companies Act, 2013, which envisages the transfer of the entire balance of Rs 837.43 crore standing to the credit of the General Reserves to Retained Earnings.
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Meanwhile, the board has considered and accorded in-principle approval for disinvestment of its entire minority stake of 19.98% in Sahyadri Agro and Dairy (formerly Indocon Agro and Allied Activities), a company engaged in milk collection business in western India, due to change in the business scenario.
NestlIndia is a subsidiary of NestlS.A. of Switzerland, the world's largest food and beverage company. NestlIndia has presence across India with 8 manufacturing facilities and 4 branch offices.
Shares of Nestle India rose 0.02% to Rs 18,016.30 on BSE. The stock hit an intraday low of Rs 17,825.75 and an intraday high of Rs 18,155.90 so far.
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