Nestlé India: Q2 Profit Rises 36%, Stays Committed To Make In India Nestlé India's net profit stood at INR 698.34 crore for the second quarter ended June, 2023 and it is coming up with its 10th factory in Odisha as part of its Make In India Initiative
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FMCG major Nestle India Ltd on Thursday reported an increase of 36.86 per cent in its net profit at INR 698.34 crore for the second quarter ended June 30, 2023 and had posted a net profit of INR 510.24 crore in the same period a year ago, Nestle India said in a regulatory filing. The company follows the January-December financial year.
Nestle India's net sales rose 15.02 per cent to INR 4,619.50 crore during the period under review, as against INR 4,015.98 crore in the corresponding period last fiscal, the company said. Nestle India's domestic sales were up 14.6 per cent to INR 4,420.77 crore, as against INR 3,857.56 crore in the June quarter of 2022. Its exports were up 25.44 per cent to INR 198.73 crore, as against INR 158.42 crore in the corresponding quarter a year ago. "Domestic sales growth is broad-based and grew by 14.6 per cent, on the back of prudent pricing and supported by mix and volume with targeted brand support," said Nestlé India Chairman and Managing Director Suresh Narayanan.
The Out-of-Home business continued to deliver strong growth this quarter, through a pivot of dual strategies in terms of portfolio transformation and robust precise execution of differentiated channel and geography plans to harness big growth opportunities. The company's RURBAN strategy was helped by increasing distribution footprint with relevant portfolio, thereby achieving higher penetration. "We witnessed strong growth across mega cities and metros, robust performance in Tier 1 to 6 towns and continued strength in rural markets. The e-commerce continued to perform strongly and now accounts for almost 6.5 per cent of sales," the CEO added. Its key brands: Kitkat, Nescafe and Maggi continued to perform well.
The company is also committed to the Make in India strategy and announced its 10th factory in Odisha. "Make in India" has always remained the cornerstone of its industrial footprint strategy. "We have now received in principle approval from Industrial Promotion & Investment Corporation of Odisha Limited (IPICOL). Our dream and ambition is to also make the Odisha factory "State of art" in line with our continuing commitment to gender diversity, sustainable manufacturing, paperless digitally managed facility with an abiding focus on environment in terms of practices. Like all our other factories, Odisha factory too will remain committed to serve the local communities through relevant societal initiatives," the CEO added.
