Nestle India on April 20 reported a 14.6 percent year-on-year growth in the first-quarter profit at Rs 602.25 crore, backed by double-digit volume growth and better-than-expected operating performance. Profit in the corresponding period stood at Rs 525.43 crore.
Revenue from operations grew by 8.6 percent year-on-year to Rs 3,610.82 crore in the quarter ended March 2021.
The company follows January-December financial year.
"Domestic sales achieved double-digit growth, on a 10.7 percent strong growth base in Q1 2020. The growth was broad-based and largely driven by volume and mix," Nestle India said.
However, "export sales were lower by 12.9 percent due to lower exports to affiliates. Demand in Out of Home channel further improved in the quarter but continues to be impacted by COVID," the company added.
Nestle said the key products boosted by in home consumption posted double-digit growth, while e-Commerce channel grew by 66 percent and contributed 3.8 percent of domestic sales.
Topline and bottomline matched analysts' expectations. Profit was estimated at Rs 600 crore on revenue at Rs 3,623 crore for the quarter, according to the average of estimates of analysts polled by CNBC-TV18.
"I feel incredibly privileged to lead a team who faced with serious challenges, persevered regardless, to deliver double- digit growth over a strong comparable in 2020. It is tribute to the commitment of the team to serve consumers as best as we could during the pandemic," Suresh Narayanan, Chairman and Managing Director said.
"It's a proud moment to witness consumer trust and love for key brands like Maggi noodles, Kitkat, Nescafé Classic, Maggi sauces, Milkmaid, Maggi Masala-AE-Magic deliver robust performance and achieve double digit growth," the company added.
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At the operating level, earnings before interest, tax, depreciation and amortisation (EBITDA) in Q1CY21 grew by 17.1 percent to Rs 929.8 crore and margin expanded 190 bps to 25.8 percent compared to year-ago period, beating CNBC-TV18 poll estimates which was pegged it at Rs 901 crore and 24.9 percent respectively.
Nestle also declared an interim dividend of Rs 25 per share. "The interim dividend for the year 2021 shall be paid on and from May 19, 2021 along with the final dividend 2020, as approved by the shareholders at the 62nd Annual General Meeting," the company said.