Nestle India net profit rises 27% to Rs 934 cr in March qtr, declares Rs 8.5 dividend

Nestle India announced their Q1FY24 results.

Nestle India on April 25 reported a standalone net profit of Rs 934 crore in March quarter, up 27% from Rs 737 crore a year ago.

A poll of seven brokerages estimated a net profit of Rs 856 crore, up 22 percent from the previous year and 17.8 percent from the December quarter.

The FMCG giant faces the Food Safety and Standards Authority of India (FSSAI) probe following allegations of high sugar content in baby food.

Revenue rose 9% to Rs 5,268 crore, the FMCG major said in a regulatory filing.

Nestle to launch Nespresso in India by the end of 2024, company to sell and distribute Nespresso products (machines and capsules) through its network, online channels, and boutiques, the company said.

Nestle India signs a joint venture with Dr. Reddy’s to bring together global range of nutritional health solutions, vitamins, minerals and health supplements of Nestlé Health Science. The joint venture is expected to become operational in the second quarter of the financial year 2024-25.

“I am pleased to share that we have delivered double-digit growth, despite challenges posed by rising food inflation and volatile commodity prices. We have witnessed a strong growth momentum across our product portfolio led by a combination of pricing and mix." said Mr. Suresh Narayanan, Chairman and Managing Director, Nestlé India.

In the fiscal year ending March 31, 2024, Nestlé India witnessed notable achievements across various segments. Confectionery, driven by the success of KITKAT, propelled India to become the second-largest market globally for the brand. The Beverages business also demonstrated strong performance, with NESCAFÉ reaching over 30 million households in India over the past seven years. Despite inflationary pressures, Milk Products and Nutrition saw robust growth. Prepared Dishes and Cooking Aids, particularly MAGGI Noodles and MAGGI Masala-ae-Magic, experienced significant growth, leading India to emerge as the largest market for MAGGI worldwide.

Additionally, the Out-of-Home business reported impressive growth, and e-commerce continued its upward trajectory, contributing to 6.8% of total sales. Nestlé India remained committed to its RUrban initiative, expanding to encompass over 200,000 villages, marking a significant milestone. The company's growth strategy focuses on exploring new platforms and categories, aligning with evolving market trends and consumer preferences. By leveraging existing strengths and investing in new opportunities, Nestlé India aims to create long-term value for its stakeholders.

Following the earnings, shares of Nestle were trading at Rs 2513, up 0.40 percent at 12.55 pm.