Nestle India Q3 profit up 37.3% to ₹908 cr; declares ₹140 dividend

The Nestle India Ltd stock rose 1.09% today as the FMCG major reported 37.3% growth in net consolidated profit during the third quarter of the current calendar year (Q3 CY23) at ₹908 crore as compared to ₹661.4 crore net profit in the year-ago period. The company's Q3 CY23 profit includes a one-time gain of ₹106.4 crore.

The company's consolidated revenue in the said quarter surged 9.5% to ₹5,036 crore, up from ₹4,601 crore in the year-ago period.

The company's EBITDA income came in at ₹1,225 crore as compared to ₹1,009.6 crore in the previous quarter, up 21.3%.

Nestle India recorded total sales growth of 9.4% during Q3, while domestic sales growth was 10.3%. The profit from operations stood at 22.6% of sales, while earnings per share came in at ₹94.18.

"Domestic sales grew double-digit, on account of mix, volume, and price. Key brands continued to perform well, led by KITKAT, NESCAFÉ CLASSIC, NESCAFÉ SUNRISE, supported by MUNCH and MILKMAID. We are investing towards building our brand equity and have made strong and significant investments across all product groups," says Suresh Narayanan, chairman and managing director, Nestlé India. He adds the company crossed ₹5,000 crore turnover, first in any quarter in the history of the company.

Nestle India's e-commerce channel contributed to 6.1% of the quarterly sales with continued growth across product groups driven by quick commerce, while the retail channel delivered double-digit growth, says the company. The out-of-home category also registered double-digit volume-led growth and in exports, MAGGI and NESCAFÉ SUNRISE met with strong demand.

In its outlook, Nestle India says uneven rain and rain deficit is expected to impact the production of maize, sugar, oilseeds, and spices, which may have an adverse impact on pricing.

"Coffee continues to be volatile because of global supply deficit. The weather during the harvest of Indian Robusta crop may impact production. Upcoming winter weather may impact wheat production. Healthy milk flush is expected in winter which is expected to keep prices stable."

The Nestle board of directors has declared a second interim dividend for 2023 of ₹140 per equity share, amounting to ₹1,349.82 crore, which will be paid on and from November 16, 2023, and is in addition to the first interim dividend of ₹27 per equity share paid on May 8, 2023.

The company also announced a sub-division or split of each equity share of face value of ₹10 each, fully paid up into 10 equity shares of face value of Re 1 each. The record date for a split of existing equity shares will be informed in the company days, the company says.

The Nestle India stock is trading 2.67% or 620.35 points up at ₹23,890 on the BSE today. The company's m-cap stands at ₹2,31,106.06 crore.