New DelhI: FMCG major Nestle India on Thursday reported a 27 per cent increase in net profit at Rs 934 crore for the fourth quarter ended March 31, 2024 on account of strong growth momentum across its product portfolio.
The company had reported a net profit of Rs 737 crore in the January-March quarter of 2022-23 fiscal.
Revenue from operations rose to Rs 5,267 crore for the period under review, as against Rs 4,830 crore in the same quarter of financial year 2022-23.
"We have delivered double-digit growth, despite challenges posed by rising food inflation and volatile commodity prices," Nestle India Chairman and Managing Director Suresh Narayanan said.
The company has witnessed a strong growth momentum across its product portfolio led by a combination of pricing and mix, he added.
"Our domestic sales crossed Rs 5,000 crore this quarter, a notable milestone for us," Narayanan stated.
He stated that the confectionery division delivered strong performance last fiscal, fuelled by KitKat, making India the second-largest market for the brand globally.
"Our beverages business recorded robust performance... milk products and nutrition witnessed strong growth despite inflationary pressures," Narayanan said.
India has emerged as the largest market worldwide for Maggi, he added.
The company noted that 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 while milk prices are expected to rise on account of expected harsh summer, it added.
Nestle reported a net profit of Rs 3,933 crore for the fifteen months ended March 31, 2024. It had reported a net profit of Rs 2,390 crore for December 31, 2022 (January-December period).
Revenue from operations stood Rs 24,394 crore for the period ended March 31, 2024. It had reported revenue of Rs 16,897 crore for January-December 2022.
The company has changed its financial year from January 1-December 31 cycle to April 1- March 31 cycle.
Accordingly, the previous financial year of the company extended up to March 31, 2024 covering a period of 15 months commencing from January 1, 2023 to March 31, 2024 comprising five quarters.
Nestle said its board approved execution of a definitive agreement to form a joint venture with Dr Reddy's Laboratories.
The partners intend to bring together a global range of nutritional health solutions as well as vitamins, minerals and health supplements of Nestle Health Science.
The joint venture is expected to become operational in the second quarter of the financial year 2024-25, subject to customary closing conditions, the FMCG firm said.
The board also approved the launch of Nespresso in India wherein the company will engage in the sale and distribution of the product (machines and capsules) through its distribution network, online channels, and boutiques.
The company expects to launch Nespresso in India by the end of 2024, it said.
The board recommended a final dividend of Rs 8.50 per share of Re 1 each for the fifteen months financial year ended March 31, 2024.
Shares of the company were trading 2.53 per cent up at Rs 2566.15 apiece on the BSE.
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