Nestle India rose 1.44% to Rs 19,663.40 after the FMCG major reported 8.3% rise in net profit to Rs 668.34 crore on 18.3% rise in revenue from operations to Rs 4,591 crore in Q3 CY22 over Q3 CY21.
Total sales jumped 18.2% year on year to Rs 4,567 crore in Q3 CY22 against Q3 CY21. Domestic sales and export sales for the quarter ended September 2022 increased by 18.3% and 15.7% respectively. Domestic sales growth was broad based with a healthy balance of pricing and volume.The company's profit before tax (PBT) grew 8.6% to Rs 906.24 crore in Q3 CY22 from Rs 834.24 crore recorded in the same period a year ago.
Total expenses jumped 20.6% year on year to Rs 3,715.4 crore in Q3 CY22 over Q3 CY21. Cost of raw material consumed surged 30.25% to Rs 1,952.75 crore while finance cost declined 28.74% to Rs 36.97 crore in the quarter ended 30 September 2022 as against the corresponding quarter previous year.
Cost of materials consumed increased due to higher commodity prices, particularly edible oil, milk and its derivatives and packaging materials, partly offset by better realisations.
Meanwhile, the board of directors have declared second interim dividend for 2022 of Rs 120 per equity share, which will be paid on and from 16 November 2022.
Commenting on the results, Suresh Narayanan, chairman and managing director of Nestle India said, I am delighted to share that we have witnessed the highest sales growth during a quarter in the last five years. This achievement has been on continued strong volume and mix evolution with broad based double-digit growth across all categories. Growth has been very strong in the large metros and mega cities and continued to be robust across smaller town classes including rural markets.
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I am delighted to announce the launch of our first ever 'direct to consumer' (D2C) platform - www.mynestle.in. I am confident that MyNestle will delight the consumer in every way with curated product bundles, personalized gifting, subscriptions, discounts, and much more. Not just this, consumers can also try gourmet recipes on the site and get free nutrition counselling. Initially, MyNestle will be launched in Delhi NCR and will expand to other parts of the country.
I mentioned 'optimistic' about Nestle's future in India and there are reasons for this! During the visit of the Global Board of Directors of Nestle S.A. along with senior leadership team to India they saw the strong sustained business performance, a vibrant young and inspired team, the equity of our brands and our deep community and societal footprint. We underscored our commitment towards environmental sustainability, the digital revolution in India and how we are part of this and the immense potential not just for India but also for Nestle in India. The visit gave us the opportunity to show case R&D capabilities and endeavour to enhance the nutrition footprint using local grains like millets. The Global Board has strongly supported the direction to accelerate investment focus and the pace of business in India.
In its commodity outlook, the company said that it is witnessing early signs of stability in prices of a few commodities such as edible oils and packaging materials. However, fresh milk, fuels, grains and green coffee costs are expected to remain firm with continued increase in demand and volatility.
Nestle India manufactures internationally famous brand names such as Nescaf Maggi, Milkybar, Kit Kat, Bar-One, Milkmaid and Nestea and in recent years the company has also introduced products of daily consumption and use such as NestlMilk, NestlSlim Milk, NestlDahi and NestlJeera Raita.
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