Nestle India Q1 results: Net profit rises 7% to Rs 746 crore; here's what management says

Nestle India on Thursday said its net profit rose 6.91 per cent year-on-year (YoY) to Rs 746.60 crore for the June quarter compared with Rs 698.34 crore in the same quarter last year. Revenue from operations was up 3.33 per cent at Rs 4,813.95 crore compared with Rs 4,658.53 crore in the corresponding quarter last year. The Nestle India stock fell following the quarterly results. It was trading at Rs 2,504 apiece on BSE, down 1.56 per cent.

“I am pleased to share that despite external challenges such as lower consumption growth, concerns on continued food inflation and volatile commodity prices, we have delivered growth across our product groups. Almost a fourth of our growth has been mix and volume led, and we hope to strengthen this trend in the coming months," said Suresh Narayanan, Chairman and Managing Director at Nestlé India.

Nestle India said the Prepared Dishes and Cooking Aids segment maintained its growth momentum, with innovations contributing to 30 per cent of the growth in the quarter. MAGGI Korean Noodles has been well received by consumers and Masala-Ae-Magic saw double digit growth, it said.

"KITKAT delivered double digit growth. We take pride in confectionery being one of the most distributed businesses with highly connected digital brands and a slew of innovations in the pipeline. Milk Products and Nutrition portfolio-maintained growth," it said.

E-commerce sustained its upward trajectory, contributing to 7.5 per cent of domestic sales and growing at double digit.

The Out-of-Home business continued its growth momentum despite unprecedented headwinds of extreme weather conditions across India, Nestle India said.

"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. There is relative stability in milk prices, packaging and edible oils," it said.