Maggi and Kitkat maker Nestle India has reported a 8.3 percent rise in post-tax profit at Rs 668 crore for the quarter ended September 2022 as against Rs 617 crore a year back.
Sequentially, the profit is 29.7 percent higher from Rs 515 crore recorded in June quarter this year.
Revenue came in higher at Rs 4,591 crore for the quarter, an increase of 18.3 percent over Rs 3,882 crore same time last year. Sequentially, the revenue is higher by 13.7 percent from Rs 4,036 crore.
"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," Suresh Narayanan, Chairman and Managing Director, Nestle India said.
Along with the September quarter results, the company also declared its second interim dividend of Rs 120 per equity share, amounting to Rs 1,157 crore, which will be paid on and from November 16, 2022.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the company grew 6.7 percent YoY to Rs 1,011 crore. EBITDA margin declined 250 bps to 22 percent due to raw material price inflation.
"We are 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," Narayanan said.
The company witnessed strong growth across brands like Maggi, Milkmaid, Nescafe Classic and Sunrise. Export sales increased by 15.7 percent on-year while emerging formats such as ‘quick commerce’ and ‘click and mortar’ contributed 7.2 percent to the quarterly sales.
Another significant announcement made by the company was the launch of MyNestle platform. It is the firm's first-ever direct-to-consumer (D2C) platform, with curated product bundles, personalized gifting, subscriptions and discounts. "Not just this, consumers can also try gourmet recipes on the site and get free nutrition counselling," the top boss added.
Updating investors on Purina Petcare acquisition, Nestle said: "In terms
of the business transfer agreement, the business has been acquired by the company after the end of the quarter, with effect from 1st October 2022." An amount of Rs 142.13 crore was paid to Purina Petcare India.
Soon after the results, Amnish Aggarwal – Head of Research, Prabhudas Lilladher, said: "We expect sequential margins improvement from Q4CY22 as high cost inventory would have been utilized during the quarter. Launch of D2C platform will further accelerate digital sales contribution over the medium term." The domestic brokerage firm has an 'accumulate' rating on the stock with a target price of Rs 20,178.
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