Wednesday, June 19, 2024

Nestle India’s Q423 profit surge to Rs 934 crore from Rs 737 crore a year ago

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Nestle India reported a jump in net profit of 27 percent to Rs. 934 crore, according to the Q423 results announced by the FMCG major. The jump in net profit marks a significant increase from Rs. 737 crore recorded by the company during the corresponding period a year ago. Nestle also reported a surge in revenue by 9% to Rs. 5,268 crore from the earlier Rs. 4,830.5 crore (YoY). The company said that the jump has been on account of higher pricing as well as demand for its packaged food items. The company has also announced a Rs. 8.5 dividend for the 15 months’ financial year ended 31st March 2024.

In his statement, Suresh Narayanan, Chairman and Managing Director, Nestle India, said, “I am pleased to share that we have delivered double-digit growth, despite challenges posed by rising food inflation and volatile commodity prices. We have witnessed a strong growth momentum across our product portfolio led by a combination of pricing and mix.”

Nestle reported an increase in its Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) of 21.8% to Rs. 1,337.7 crore from Rs. 1,098,7 crore. It also indicated that the EBITDA margin improved by 270 basis points (bps) to 25.4% from 22.7%, YoY.

In its statement, the company has highlighted some concerns too that it will have to deal with. “Commodity prices are seeing unprecedented headwinds in Coffee and Cocoa with all time high prices and an ongoing price rally. Cereals and grains are going through a structural cost increase backed by MSP. Milk prices are expected to rise on account of expected harsh summer.”

The Q4 results have been declared in the backdrop of a major controversy that the company finds itself in regarding the levels of sugar content in baby food. The row started after a global report published by Swiss NGO Public Eye was released that claimed Nestle’s product had high sugar content. Indian food safety regulator FSSAI has launched a drive to collect samples of Nestle’s Cerelac baby cereals from across the country.

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