FMCG major Nestle India on Wednesday reported a 10.68 per cent increase in its net profit to Rs 538.58 crore for the second quarter ended June 30, driven largely by an increase in sales volume of key products.
The company, which follows the January-December financial year, had posted a net profit of Rs 486.60 crore in the corresponding period last year, Nestle said in a BSE filing.
Its net sales during April-June 2021 rose 13.83 per cent to Rs 3,462.35 crore, compared with Rs 3,041.45 crore in the year-ago period, the company said.
Nestle India's domestic sales were up 13.66 per cent to Rs 3,304.97 crore, against Rs 2,907.74 crore a year ago.
Its export sales were up 17.70 per cent to Rs 157.38 crore, compared with Rs 133.71 crore in the year-ago quarter.
"Total sales and domestic sales for the quarter increased by 13.8 per cent and 13.7 per cent, respectively, on a base impacted by COVID-19-induced lockdown with production disruptions across factories.
"Domestic sales growth was driven by volume and mix," said Nestle India in a post-earning statement.
It further said exports jumped 17.7 per cent due to timing of exports to the affiliate.
Key products MAGGI Noodles, KITKAT, Nestlé MUNCH, MAGGI Sauces, MAGGI MASALA-AE-MAGIC posted double-digit growth, it added.
Besides, Nestle India also reported "strong performance" in sales from e-commerce channels, which reported over two-fold jump and contributed 6.4 per cent of its domestic sales.
Nestle India's total expenses in the April-June 2021 quarter stood at Rs 2,775.68 crore, up 13.93 per cent as against Rs 2,436.14 crore in the year-ago period.
For the first half of the year (January-June), Nestle's net profit was up 12.72 per cent to Rs 1,140.83 crore as against Rs 1,012.03 crore in the corresponding period.
Nestle's net sales during the first half rose 11.26 per cent to Rs 7,062.55 crore, compared with Rs 6,347.23 crore in the year-ago period.
Nestlé India Chairman and Managing Director Suresh Narayanan said, "Despite the enormous challenges during the devastating second wave of the pandemic in this (June 2021) quarter, I am immensely proud of the resolve of my team and our partners." Narayanan added that an unwavering determination, empathetic teamwork, singular commitment and resolute focus ensured that much-needed food and beverage products were available to the consumers.
Last year, Nestle had announced to invest Rs 2,600 crore in India over a 3-4-year period.
"I am pleased to announce that out of this, we have already invested about Rs 1,000 crore thus far. This is a vindication of our confidence and trust in the Nestlé journey in India," he added.
The company has also raised concerns over the increase in commodity prices across oils and packaging materials, in recent times.
Shares of Nestle India Ltd on Wednesday closed at Rs 18,012.60 apiece on the BSE, down 1.24 per cent from its previous close.
