Nestle India reports 9.6% growth in profits to US$47.96m in Q4

INDIA – Nestle India reported a 9.6% growth in net profits to US$47.896 million for its fourth quarter period ended 31st December 2018 up from US$43.76 million posted in the corresponding period in its previous financial year.

The company total revenues in the period under review increased from US$417.16 million against US$372.26 posted in the last quarter of the previous fiscal year.

Nestle India’s total sales were up by 11.2% while domestic sales grew 12% in the period driven by increased volumes.

Subsequently, the year closed with the company’s net profit jumping to US$225.52 million from US$171.94 million posted the previous year.

The total for the full year ending December 31, 2018 rose to US$1.621billion from US$1.455 billion in the 2017 financial year.

Suresh Narayanan, Nestle India Chairman and Managing Director said that the company posted double digit growth across all its categories, which he attributed to increasing demand of the products, reports ET Retail.

“We have, once again, delivered volume led profitable growth.

There has been double digit growth in almost all the categories, supported by a step up in demand generating activities including on new products.

We became the first listed pure play food and beverage company in India to cross Rs 10,000 crore (US$1.403 billion) in revenue for the full year 2017 and have now crossed Rs 11,000 crore (US$1.543 billion) in revenue for the year 2018,” he added.

According Narayanan, the company’s brands including, Maggi, Nescafe, Kitkat, Munch and Everyday continued to deliver strong performances.

During its previous fiscal year, the company’s total sales and domestic sales increased by 10.7%  and 10.9% respectively.

“These growth rates are adversely impacted due to lower reported sales by the change in structure of indirect taxes,” Nestle India said in a statement.

The company’s board recommended a final dividend of US$0.35 (Rs 25) per equity share amounting to US$38.83 million for the 2018 financial year.

Meanwhile, Nestle has announced the global launch of a new range of coffee products under the Starbucks brand which will include products like whole, roeat nad ground bean and Starbucks coffee capsules.

Nestle will commercialise the products in grocery stores and on online platforms in various markets in Asia, Europe, Middle East, Latin America and the U.S.

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