Food and beverage company Nestle India Ltd posted a decline in net profits in its financial report for the quarter ending March 2022.
The House of the brands like KitKat, Maggie, and Nescafé saw a 1.25 percent year-over-year ( YoY) fall in its net profit to ₹ 594.71 crore from ₹ 602.25 crore, posted in the same period a year ago.
Nestle follows the January-December financial year calendar instead of the April-March fiscal year.
However, Nestle India’s net sales leaped 9.74 percent to ₹ 3,950.90 crore during the reporting quarter as against ₹ 3,600.20 crore in the corresponding quarter last fiscal, the company added.
Its total expenses in the first quarter spiked 12.98 percent to ₹ 3,195.90 crore as against ₹ 2,828.61 crore in the year-ago period.
Nestle India’s domestic sales posted a double-digit surge of 10.23 percent to ₹ 3,794.26 crore compared with ₹ 3,442.03 crore in the January-March quarter of the previous fiscal.
“We have delivered double-digit domestic sales, driven by volume and mix,” Suresh Narayanan, chairman and managing director of Nestlé India, said in its earnings report.
“Our key brands continue to perform well with Maggi Noodles, KitKat, Nestlé Munch, Nescafé Classic, and Sunrise posting creditable double-digit growth in this quarter.”
The company’s exports slipped marginally by 0.96 percent to ₹ 156.64 crore. During the same quater in the last fiscal, the company posted ₹ 158.17 crore in exports.
“We will continue to leverage e-commerce further through meaningful shopper insights, data analytics, speed, sharp communication, and customization,” Mr. Narayanan said.
EBITDA came in at Rs. 946.09 crore in March 2022, down 1.4% from Rs. 959.52 crore in the same period a year ago. In addition, Nestle’s Earnings Per Share (EPS) has decreased to Rs. 61.68 in quater under review from Rs. 62.46 in March 2021.
Post the declaration of the earnings, the shares of Nestle India Ltd slipped 0.19% on Friday, closing at Rs 18,172.05 apiece on BSE.