The FMCG major's net profit rose 2.3% to Rs 483.31 crore on 9.16% increase in net sales to Rs 3,417.52 crore in Q4 December 2020 over Q4 December 2019.
Profit before tax in the fourth quarter stood at Rs 670.17 crore, up by 9.1% from Rs 614.10 crore in the same period last year. Current tax expense during the quarter increased by 34.2% year-on-year (YoY) to Rs 193.84 crore.
Total sales and domestic sales for the quarter increased by 9.2% and 10.1% respectively. Domestic sales growth is broad based largely driven by volume & mix. Demand in out of home channel further improved in the quarter but continues to be impacted by COVID. Export sales were lower by 7.7% due to lower coffee exports.
Nestle India's net profit increased by 5.8% to Rs 2,082.43 crore on 8.09% rise in revenue from operations to Rs 13,290.16 crore in the year ended on 31 December 2020 compared with the year ended on 31 December 2019.
Annually, the company's domestic sales grew by 8.5% YoY while the net cash generated from operating activities was at Rs 2,454 crore in the year ended on 31 December 2020. The domestic sales growth was broad based and was largely driven by volume and mix. Nearly two thirds of Nestle's key products, boosted by in-home consumption, posted double digit growth. Demand in out-of-home channels continued to improve. E-Commerce grew by 111% during the period under review and now contributed 3.7% of domestic sales of the company.
Suresh Narayanan, chairman and managing director, NestlIndia said, "I am pleased to share that we delivered strong domestic sales growth. This was backed by a step up in marketing spends, especially in the last quarter. Our innovation and renovation pipeline continued to be a thrust area across categories like Foods, Breakfast Cereals and NestlHealth Sciences.
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After initial challenges due to the pandemic, the demand in Out of Home channels has continued to improve, sequentially over quarters and we remain confident of its recovery."
The company's board of directors have recommended a final dividend of Rs 65 per equity share amounting to Rs 626.70 crore for the year 2020. The total dividend for 2020 aggregates to Rs 200 per equity share which includes one interim dividend of Rs 135 per equity share paid on 20 November 2020.
Nestle India operates in the food segment. The firm food business incorporates product groups, which include milk products and nutrition, beverages, prepared dishes and cooking aids, and chocolate and confectionery.
The scrip slumped 4.72% to currently trade at Rs 16,408.70 on the BSE.
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