NEW DELHI: FMCG major Nestle India posted a strong performance in the opening quarter of 2021, reporting a 14.6 per cent year-on-year growth in its net profit. Beating estimates, its PAT stood at Rs 602 crore, up from Rs 525 crore in the year-ago period.
Total sales increased by 8.9 per cent during the quarter, while domestic sales rose by 10.2 per cent, mainly driven by volume and mix.
The consumer goods giant’s revenue from operations during the quarter came in at Rs 3,610.8 crore, a surge of 8.6 per cent from Rs 3,325 crore in the same period last year.
Its e-commerce operations have continued to pay dividends and grew by 66 per cent to maintain its robust contribution to the domestic sales.
Export sales were lower by 12.9 per cent due to lower exports to affiliates. Demand in out of home channel has improved in the quarter but still remains impacted by Covid2019, the company said in a BSE filing.
Key brands like Maggi noodles, Kitkat, Nescafé Classic, Maggi sauces, Milkmaid, Maggi Masala-e-Magic have also performed strongly and achieved double digit growth in Q1.
“As the pandemic rages on, the quarter gone by has been another test of resilience of my team and our partners,” said Nestle India chairman & MD Suresh Narayanan. “I feel incredibly privileged to lead a team who faced with serious challenges, persevered regardless, to deliver double digit growth over a strong comparable in 2020. It is tribute to the commitment of the team to serve consumers as best as we could during the pandemic.”
At the operating level, earnings before interest, tax, depreciation and amortisation (EBITDA) in Q1 grew by 17.1 per cent to Rs 929.8 crore and margin expanded 190 bps to 25.8 percent compared to the year-ago period.
