HomeInvestingEarningsNestle India Q4: Net profit rises 62% to Rs 628 crore, revenue...

Nestle India Q4: Net profit rises 62% to Rs 628 crore, revenue up 14%

Nestle India’s net profit increased by 62 percent year on year to Rs 628 crore in the October-December 2022 quarter.

At the same time last year, net profit was Rs 386 crore, following an unusual loss of Rs 236.5 crore.

However, operating revenue for the December quarter increased 13.8 percent year on year to Rs 4,257 crore from Rs 3,739.3 crore the previous year. On the operational front, EBITDA (profits before interest, taxes, depreciation, and amortisation) increased by 15.4 percent to Rs 982 crore.

Operational margins increased from 22.8 percent to 23 percent year over year.

Both the topline and bottomline earnings of Rs 4,395 crore and Rs 611 crore matched market estimates. Upon the announcement of Q4 earnings, the stock skyrocketed. The stock was trading at Rs 19,708 on the NSE at 12:20 p.m., up 2.32 percent.

Coupled with the third-quarter results, Nestle India’s board of directors recommended a final dividend of Rs 75 per equity share of Rs 10 for 2022.

“We delivered our highest double-digit growth in a decade, led by sustained volume and mix-led growth, leading to strong value growth.” In 2022, total sales grew by 14.5 percent, and domestic sales increased by 14.8 percent, with broad-based performance across all categories, “Suresh Narayanan, chairman and managing director, Nestlé India, said.

The firm recorded total sales of Rs 16,790 crore and a profit of Rs 2,390 crore for the fiscal year 2022. Profits per share were Rs 247.9, which included increased market share in confectionery items.

“In 2022, the out-of-home (OOH) business made a strong comeback, recovering its pre-Covid base and delivering robust growth.”With our direct-to-consumer (D2C) platform, products manufactured by the company are now available in Delhi and the NCR,” Narayanan added.

Throughout the quarter, the firm also bolstered its RURBAN strategy by expanding distribution sites and expanding into smaller towns and cities.

According to its earnings news release, its R&D centre has inked an MOU (memorandum of understanding) with Nutrihub and the ICAR Institute of Millet Research with the goal of partnering in areas such as millet processing.

Commodity outlook in the short-to-medium term

According to the firm, cereal, grain, and coffee costs are still at a 10-year high. Fresh milk prices have also remained solid as a result of Lumpy Skin Disease in H2’22 and an increase in feed expenses for producers.

“With some respite in crude oil, input materials such as packaging have witnessed relief.” “Demand continues to be robust, with the domestic outlook of prices evolving because of supply and weather conditions,” it noted.

News Desk
News Deskhttps://businessheadline.in
Business Headline aims at providing you with all the insights around the business world along with creative write-ups and reviews by renowned global personalities. Additionally the Business Blog will help startups and enterprises to develop their business.
- Advertisment -

CRICKET SCORE LIVE

- Advertisment -

Most Popular

error: