FMCG major Nestle India on Wednesday reported a net profit of Rs 656 crore for the quarter ended December 2023, which is up 4% year-on-year (YoY) from Rs 628 crore posted in the same quarter last year.
Revenue from operations rose 8% YoY to Rs 4,584 crore in the reporting fourth quarter.
The Board has approved the declaration of a third interim dividend of Rs 7 per equity share for the financial year 2023-24. The said dividend will be paid on and from March 5 and the record date for the same is fixed as February 15.
The sales growth was on the back of pricing and mix growth, with strong growth momentum in e-commerce and out-of-home channels.
During the third quarter, strong demand for Nescafe Classic and Nescafe Sunrise propelled the beverages product group to be the largest contributor to growth.
The beverages business witnessed a double-digit growth and Nescafe gained significant market share. Milk and product group too posted double-digit growth. Prepared Dishes and the Out-of-Home business was the fastest growing business of the company during the reporting period. It was fuelled by portfolio transformation and premiumisation, channel prioritization, digital lead generation, and new customer acquisition.
“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 the opening of new kiosks in key locations,” said Suresh Narayanan, Chairman and MD, Nestle.
E-commerce contributed 7% of domestic sales in this quarter with targeted demand generation initiatives across key platforms based on portfolio relevance and shopper needs. 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.
Nestle said the quarter was marked by an increase in brand investments across all product groups. The company expanded its product offerings across key international markets for the Indian diaspora exploring multiple markets.
On Wednesday, Nestle stock was trading 1.28% higher at Rs 2,488 on NSE.
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