Nestle India Ltd on July 27 reported a consolidated net profit at Rs 698.34 crore for the June quarter of FY24, registering a growth 36.8 percent from Rs 510.24 crore in the same quarter of the previous financial year.
The company reported a 5.1 percent fall in profit from Rs 736.64 crore in the previous quarter.
Total revenue of the company is Rs 4,658.53 crore, rising 15.14 percent from Rs 4,045.69 crore in the year-ago quarter, the FMCG major said in a regulatory filing. The revenue decreased 3.56 percent from Rs 4,830.53 crore in the previous quarter.
The domestic sales growth is broad based, with prudent pricing supported by mix and volume. Export sales increased by 25.4 percent.
“I am pleased to share that we have, yet again, delivered robust performance, with all product groups registering double digit growth. This is the fifth quarter in a row of double-digit growth across ALL product groups,” said Suresh Narayanan, Chairman and Managing Director, Nestlé India.
Revenue was in line but net profit missed estimates. According to a poll of brokerages, Nestle Q2 revenue was seen at Rs 4,694 crore while net profit was Rs 701 crore.
The company registered double-digit growth driven by MAGGI Noodles and aided through distribution expansion and impactful consumer activations, the company said in a press release.
The company’s milk products delivered strong double-digit growth despite
inflationary pressures driven by Milkmaid and Peptamen.
Commodity outlook
In the filing, the company noted that commodities such as edible oils, wheat and packaging materials have been in the lower price range. “A reversal of price trend is noted in fuels with prices softening in second quarter after reaching higher level towards the end of quarter one. In fresh milk, there has been price stability. Robusta prices are elevated and are expected to remain volatile,” it added.