Fast moving consumer goods company Nestle India on Tuesday reported a 9.25 per cent year-on-year growth in net profit at Rs 463.28 crore for the first quarter ended March 31, 2019. The company, which follows January-December financial year for accounting, had posted net profit of Rs 424.03 crore in March quarter last year. "The company's revenue from operations rose 8.91 per cent to Rs 3,003 crore from Rs 2,757.24 crore in the corresponding quarter last year," Nestle said in a filing to the Bombay Stock Exchange.
For the January-March quarter, domestic sales increased 10.2 per cent y-o-y to Rs 2,821.55 crore on the back of volume growth in brands like Maggi, Kitkat and Nestle Munch. Export sales declined 8.9 per cent to Rs 160.84 crore due to lower coffee exports to Turkey, the company said.
Commenting on the results, Suresh Narayanan, Chairman and Managing Director, Nestle India said, "We have continued on the track of volume-led growth with our iconic brands like Maggi, Kitkat and Nestle Munch delivering strong performances. The market momentum remained strong, while the input costs have witnessed hardening."
Narayanan also announced the company would be launching organic food products in the category 'Milk Products and Nutrition' in the coming months, in line with its vision to provide exciting options rooted in nutrition, health and wellness.
Speaking on the progress of Nestle Business Excellence (NBE), he said it would provide fuel for growth for the business to leverage the company's size and capabilities. "Towards this, a state of the art facility has been operationalised in Gurugram, with adequately trained manpower," he said.
"The board of directors had declared on 25th April 2019, an interim dividend for 2019 of Rs 23 per equity share (Face value Rs 10 per equity share) amounting to Rs 222 crore, which will be paid on and from 15th May 2019," Nestle said in the exchange filing.
Ahead of the earnings announcement, the shares of Nestle closed 0.99 lower at Rs 10,214.70 apiece on the Bombay Stock Exchange.
Edited by Chitranjan Kumar
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