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Nestle India reports 5 percent growth in Q3 profit at Rs617 cr, to pay Rs110 interim dividend

19 Oct , 2021   By : Kanchan Joshi

Nestle India reports 5 percent growth in Q3 profit at Rs617 cr, to pay Rs110 interim dividend

Food and beverages major Nestle India on Tuesday reported a 5% growth in net profit at Rs617 crore for the September quarter as compared to Rs587 crore in the year-ago period.

Nestle India, which follows a January to December financial year, saw its net sales grow by 9.6% to Rs3,865 crore for the reporting period. It was Rs3,525 crore in the corresponding quarter last year.

The Board declared a second interim dividend of Rs110 per share. The dividend amounts to Rs1,060 crore which will be paid on and from 16 November, 2021.

"This quarter has once again seen the Company deliver ‘double digit broad based value growth’ in domestic sales across categories. Organized trade witnessed a resurgence in the third quarter with strong revenue growth in mid twenties after a muted second quarter which was impacted by the pandemic second wave," said Suresh Narayanan, Chairman and Managing Director.

The company reported domestic sales growth at 10.1% during the reporting period. The growth is broad based and largely driven by volume and mix.

Meanwhile export sales increased by 1.3% in September quarter.

"E-commerce channel showed strong acceleration on the back of convenience and pandemic driven consumer behaviour, fully leveraged by a team who used the power of meaningful shopper insights, data analytics, speed, flexibility, sharp communication and customisation for the channel at scale," said.

Price outlook for key categories like wheat, coffee, edible oils remains firm to bullish while costs of packaging materials continue to increase amid supply constraints, rising fuel and transportation costs, Nestle said in an exchange filing.

The company expects input prices to be on bullish trend both globally and to some extent locally.

Ahead of the results, Nestle stock closed flat at 19,406.55 on NSE. So far in 2021, the scrip has gained 5.18%.

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