Nestle India, a major FMCG company, reported a 27% increase in net profit to INR 934 crore for the fourth quarter ended March 31, 2024. This surge is attributed to strong growth across its product portfolio. In comparison, the company had recorded a net profit of INR 737 crore in the corresponding period of the fiscal year 2022-23.
During the period under review, revenue from operations increased to INR 5,267 crore, compared to INR 4,830 crore during the same quarter of the fiscal year 2022–2023.
Nestle India Chairman and Managing Director Suresh Narayanan remarked, “Despite the challenges presented by escalating food inflation and fluctuating commodity prices, we have achieved double-digit growth.”
He added that the company has experienced robust growth momentum across its product portfolio, driven by a combination of pricing and product mix.
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Narayanan noted, “This quarter marks a significant milestone for us as our domestic sales surpassed INR 5,000 crore.”
He mentioned that the confectionery division showed robust performance in the last fiscal year, driven by KitKat, thereby positioning India as the second-largest market for the brand worldwide.
Narayanan noted, “Our beverages business demonstrated strong performance… and our milk products and nutrition segments experienced significant growth despite inflationary pressures.”
He added that India has become the largest market globally for Maggi.
The company observed that commodity prices, particularly in coffee and cocoa, are facing unprecedented challenges, marked by all-time high prices and an ongoing price rally.
Cereals and grains are undergoing a structural cost increase backed by MSP, while milk prices are expected to rise due to the anticipated harsh summer, it added.
Nestle reported a net profit of INR 3,933 crore for the fifteen-month period ended on March 31, 2024, compared to INR 2,390 crore for the period ended on December 31, 2022 (January to December).
The revenue from operations amounted to INR 24,394 crore for the period ended on March 31, 2024, compared to INR 16,897 crore reported for January to December 2022.
The company has shifted its financial year from the January 1-December 31 cycle to the April 1-March 31 cycle.
Accordingly, the company’s prior financial year extended until March 31, 2024, covering a period of 15 months from January 1, 2023, to March 31, 2024, comprising five quarters.
Nestle announced that its board has approved the execution of a definitive agreement to establish a joint venture with Dr. Reddy’s Laboratories.
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The partners aim to unite a diverse range of global nutritional health solutions, along with Nestle Health Science’s vitamins, minerals, and health supplements.
The FMCG firm stated that the joint venture is anticipated to commence operations in the second quarter of the financial year 2024-25, pending customary closing conditions.
The board also greenlit the introduction of Nespresso in India, where the company will handle the sales and distribution of the product (machines and capsules) through its distribution network, online channels, and boutiques.
The company anticipates launching Nespresso in India by the end of 2024, as per their statement.
The board proposed a final dividend of INR 8.50 per share of INR 1 each for the fifteen-month financial year that ended on March 31, 2024.
The company’s shares were up by 2.53 percent, trading at INR 2566.15 each on the BSE.
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