Nestle India added 1.84% to Rs 2,503 after the FMCG major's net profit increased 4.39% to Rs 655.61 crore on 8.07% rise in total revenue from operations to Rs 4,600.42 crore in Q4 CY23 over Q4 CY22.
Total sales increased by 8.28% year on year to Rs 4,583.63 crore in the fourth quarter of 2023. During the quarter, domestic sales grew by 8.86%, while export sales fell and 5.59%.
Profit before exceptional items and tax (PBT) was at Rs 993.78 crore in Q4 2023, up 15.68% from Rs 859.07 crore posted in Q4 2022.
Exceptional item for the quarter represents the past service cost of Rs 1,07.3 crore recognised on account of change in cost of servicing the defined pension benefit under the company's unfunded pension plan following the decision to transfer the responsibility for making payments of the defined pension, to insurance service provider.
Total expenses rose 6.12% year on year (YoY) to Rs 3,636.94 crore during the quarter. Cost of raw material consumed was Rs 1,977.51 crore (down 1.42% YoY) and employee benefits expense stood at Rs 420.10 crore (up 3.23% YoY) during the period under review.
On full year basis, the companys net profit jumped 24.06% to Rs 4038.3 crore on 13.19% increase in revenue from operations to Rs 191.26 crore in CY23 over CY22.
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Suresh Narayanan, chairman and managing director of NestlIndia, said, I am pleased to share that despite external challenges, we have once again delivered a strong performance this quarter. Domestic sales grew by 8.9% on the back of pricing and mix growth, with strong growth momentum in e-commerce and out-of-home channels. The quarter was marked by an increase in brand investments across all product groups. I am also pleased to note that during the year 2023, our total sales grew by over 13.3% and we crossed Rs 19,000 crore mark.
Our beverages business witnessed a double-digit growth and NESCAFgained significant market share. Milk and Nutrition product group posted double-digit growth. Prepared Dishes and Cooking Aids also maintained creditable growth this quarter. Confectionery, one of our strong growth drivers also delivered good growth.
Our out-of-home business continued to accelerate rapidly this quarter by focussing on relevant innovations, potential geographies, and robust penetration in emerging channels with opening of new kiosks in key locations. E-commerce delivered strong growth contributing to 7% of domestic sales in this quarter.
E-commerce delivered strong growth contributing to 7% of domestic sales in this quarter. Organized trade also witnessed strong growth backed by festive walk-ins and new product launches. The teams excelled in rolling our shopper resonant activities across our large portfolio in both legacy platforms and the fast growing quick commerce.
We are very pleased with an uptick in sales in our RUrban markets which has sustained despite the challenging environment. Our RUrban strategies of creating portfolio, infrastructure analytic platforms, activation has supported deeper penetration and distribution expansion that we have witnessed. We expanded our direct coverage and added 5,300 villages this quarter, reaching a total of over 196,000 villages, close to 200,000 villages, which was our ambition.
Our customer ordering app in RUrban markets, NesMitra has resulted in boosting engagement and gaining significant business traction. NesMitra app has over 7,500 active users which is increasing steadily, and it has been recognised in the Nestlworld for driving efficiency and speed. Service excellence and partnership with our retail and distributor partners is our consistent cornerstone of achieving strong results.
We have received the land allotment letter from the government for our 10th factory in Odisha. We have made strong strides toward environmental sustainability by increasing our investments, and regularly assessing the progress of our environmental goals, across four commitment areas such as climate, packaging, sourcing and water.
Meanwhile, the firm's board has declared third interim dividend for 2023 of Rs 7 per equity share. The said dividend will be paid on and from 5 March 2024 and record date for the same has been fixed on 15 February 2024.
Further, the board of directors approved slump sale of Nestle Business Services (NBS) division of the company to Purina PetCare India, a 100% subsidiary of NestlS.A., for an aggregate consideration of Rs 79.80 crore. The said consideration is at an arms length basis and would be adjusted for net working capital transferred by the company as on 30 June 2024.
Nestlis the world's largest food and beverage company. It manufactures internationally famous brand names such as Nescaf Maggi, Milkybar, Kit Kat, Bar-One, Milkmaid and Nestea.
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