Nestle India Reports double Digit Growth Across all Product Groups in Q1-2023- Highest in a Decade

Nestlé India, a subsidiary of Nestlé SA, has reported double-digit growth across all product groups in the last four quarters, marking the highest growth in a quarter in the last decade, excluding an exceptional quarter in 2016.

The Board of Directors approved the results for the first quarter of 2023, with a total sales growth of 21.3%, amounting to INR 4,808 Crore. Domestic sales growth was recorded at 21.2%. The company’s profit from operations was 21.0% of sales, with a net profit of INR 737 Crore and earnings per share of INR 76.4.

Prepared dishes and cooking aids, milk products and nutrition, confectionery, and beverages delivered strong growth across all products in their portfolio, supported by market presence, media campaigns, and consumer activations.

KITKAT and MUNCH led the growth in confectionery, while NESCAFÉ Classic, NESCAFÉ Sunrise, and NESCAFÉ GOLD drove the growth in beverages. The pet food category also continued to build on its momentum and launched new products within its cat portfolio.

Nestlé India’s e-commerce channel witnessed significant growth in quick commerce, while organized trade witnessed broad-based growth across product groups in retail business, fueled by rapid outlet expansion. Out-of-Home (OOH) also posted strong performance, with secular growth across brands, geographies, and channels.

In addition to delivering strong financial results, Nestlé India launched ThickenUp Clear, a food and beverage thickener from its Nestlé Health Science portfolio, in line with the company’s commitment to enabling people to live healthier lives. The company’s societal initiatives, such as the Nestlé Healthy Kids Programme, Sanitation, and Oxygen plants, are also providing support to communities near its Sanand factory.

While there are early signs of softening commodities such as edible oils, wheat, and packaging materials, the cost of fresh milk, fuels, and green coffee is expected to remain firm due to continued increases in demand and volatility. The Board of Directors declared an interim dividend for 2023 of INR 27.0 per equity share, along with the final dividend for 2022 of INR 75.0 per equity share approved in the Annual General Meeting on 12th April 2023.

Source : As per Company Presentation

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The information provided in this article is for educational purposes only and should not be construed as investment advice. Investors should conduct their own research and consult with a licensed financial advisor before making any investment decisions.