NEW DELHI: FMCG major Nestle India on Thursday reported 1.25 per cent year-on-year decline in its net profit to Rs 594.7 crore for January-March 2022 quarter.
The company's total sales grew by 9.74 per cent to Rs 3,950.90 crore in the quarter ended March 2022 from Rs 3,600.20 crore recorded in the corresponding period of last year. The company's domestic sales grew by 10.2 per cent during the quarter under review.
The results are not up to the market's expectations. Nestle India's share fell after the announcement of the results. It was trading 0.21 per cent down at Rs 18275 at 1.23 pm. The scrip was trading in the red despite a 1.32 per cent jump in the benchmark Sensex.
As highlighted in previous quarters, the cost of key raw and packaging materials are witnessing 10-year highs, and costs continued to surge this quarter which has impacted profit from operations, Nestle India said in a statement after the company's Board of Directors approved the results for the first quarter of 2022. Nestle India follows the calendar year as the financial year.
Continued inflation is likely to be a key factor in the short to medium term. We are confident of facing this turbulence with strategies of scale, efficiencies, mix and pricing all of which we will deploy judiciously, it said.
"Our key brands continue to perform well with Maggi Noodles, KitKat, Nestle Munch, Nescafe Classic and Sunrise posting creditable double-digit growth in this quarter," Suresh Narayanan, Chairman and Managing Director, Nestle India, said in a statement.
"This growth across a range of categories was enabled by a mix of innovative campaigns, attractive consumer promotions, analytics-based consumer insights, geo-targeted distribution drives, and leveraging the opportunity of festive seasons. Our endeavour is to continue on the path of penetration-led volume growth with determination," Narayanan said.
The Board of Directors on 11th April 2022 have declared an interim dividend for 2022 of Rs 25.0 per equity share (Face value Rs 10/- per equity share) amounting to Rs 2,410.4 million, which will be paid on and from 6 May 2022 along with the final dividend for 2021 of Rs 65.0 per equity share approved in the Annual General Meeting on April 12, 2022, the company said.