Nestle records sales of Rs 4583.6 crore for fourth quarter of 2023. Commenting on the results, Suresh Narayanan, Chairman and Managing Director, Nestlé India said, “I am pleased to share that despite external challenges, we have once again delivered a strong performance this quarter. Domestic sales grew by 8.9 percent on the back of pricing and mix growth, with strong growth momentum in e-commerce and out-of-home channels. The quarter was marked by an increase in brand investments across all product groups. I am also pleased to note that during the year 2023, our total sales grew by over 13.3 percent and we crossed Rs 19,000 crore mark.”
He added, “All key brands and product groups have contributed to Nestlé India’s consistent growth trajectory. This quarter, strong demand for NESCAFÉ CLASSIC and NESCAFÉ SUNRISE propelled the Beverages product group to be our largest contributor to growth. Our beverages business witnessed a double-digit growth and NESCAFÉ gained significant market share. Milk and Nutrition product group posted double-digit growth. Prepared Dishes and Cooking Aids also maintained creditable growth this quarter. Confectionery, one of our strong growth drivers also delivered good growth. The growth across all product groups demonstrates the trust consumers placed in us and the unwavering commitment and dedication of our teams.”
He added, “I am happy to share that our Out-of-Home business continued to accelerate rapidly this quarter by focussing on relevant innovations, potential geographies, and robust penetration in emerging channels with opening of new kiosks in key locations. This clarity of strategies and discipline of execution made our Out-of-Home business to be the fastest-growing business of our company in India.E-commerce delivered strong growth contributing to 7 percent of domestic sales in this quarter. Organized trade also witnessed strong growth backed by festive walk-ins and new product launches. The teams excelled in rolling our shopper resonant activities across our large portfolio in both legacy platforms and the fast growing ‘quick commerce.”
Innovation and renovation are key components of our business strategy. We strive to offer our consumers high-quality products that cater to their evolving tastes and preferences. Over the past seven years, we have launched 130 new products by recalibrating our innovation process, which has helped increase our sales and drive growth. Some of our recent launches include MAGGI Korean noodles, MAGGI Oats Noodles with Millet Magic and GERBER Puffs. As we seek new frontiers of culinary experience, I am delighted to announce that we have piloted, through a limited period menu, MAGGI Professional’s new plant-based range consisting of burger patty and mince with a committed and competent partner. Offering tastier and better forms of nutrition in a relevant platform is a constant endeavour of Nestlé to delight consumers.
Financial Highlights – Q4 2023:
Total Sales of Rs 4583.6 crore
Total Sales Growth at 8.3%. Domestic Sales Growth at 8.9%
Profit from Operations at 21.9% of Sales
Net Profit of INR 655.6 crore
Earnings Per Share of INR 6.80
Business:
E-commerce: Continued growth momentum with targeted demand generation initiatives across key platforms based on portfolio relevance and shopper needs.
Organized Trade: Delivered robust growth, spurred by festive walk-ins. The channel continued to play a pivotal role in premiumization and new product launches.
Out of Home (OOH): Reported strong growth, fuelled by portfolio transformation and premiumisation, channel prioritization, digital lead generation and new customer acquisition.
Exports: Expanded product offerings across key international markets to delight Indian diaspora exploring multiple markets.
Product Groups Performance – Q4 2023 (Domestic):
Prepared Dishes and Cooking Aids: Growth momentum continued across the portfolio, driven by communications, media investment, shopper engagement and innovations aimed at developing the market across town classes especially RURBAN markets.
Milk Products and Nutrition: Expanded NESTLÉ A+ Masala Millet to Mumbai and MILO for Teenager to key south markets. MILKMAID and PEPTAMEN continued to receive positive consumer response.
Confectionery: Confectionery led by KITKAT and MUNCH delivered good growth aided by consumer led campaigns and new product launches such as MILKYBAR caramel, MUNCH fruity, POLO watermelon. KITKAT forayed into the premium segment with the launch of three variants, rich chocolate coated wafer, dark chocolate wafer, and caramel chocolate coated wafer.
Beverages: Strong growth delivered across NESCAFÉ portfolio. NESCAFÉ CLASSIC and NESCAFÉ Sunrise registered double-digit growth. NESCAFÉ continued to cement its leadership position with market share gains and increased household penetration.
Petcare Business: Felix wet cat food continued to receive positive feedback from trade and cat parents with e-commerce playing a pivitol role.
Commodity Outlook:
Coffee prices continue to be volatile and are historically high due to limited availability. Healthy milk flush in winter is expected to keep prices stable. Commodities such as wheat and rice are stable as of now. Rain deficit is expected to impact the production of maize, sugar, oil seeds and spices that may impact pricing.