Nestle India Q2 Results FY2024, Net profit at Rs.908.08 crores

On 19th October 2023, Nestle India announced its quarterly results.

Key Highlights:

- Sales totaling Rs. 5,009.5 crore. Growth in total sales of 9.4%. 10.3% domestic sales growth. 
- Revenue from operations stood at Rs. 5036.82 crores.
- Profit before tax stood at Rs. 1222.02 crores
- Profit After Tax (PAT) for the second quarter was Rs.908.08 crores

Business Highlights:

- Premade Foods and Cooking segment's growth momentum persisted, propelled by a mix of market exposure, powerful media campaigns, and focused consumer interaction programs, all supported by innovation tailored especially for urban markets. 
- Milk Products and Nutrition segment posted double-digit growth. Nestlé a+ Masala Millet was introduced. Customers have continued to respond well to MILKMAID and PEPTAMEN.
- Strong growths were seen in confectionery items, with KITKAT and MUNCH providing support. Consistent media backing, digital-first advertising, and a major launch strategy on KITKAT's premium portfolio all contributed to performance.
- Beverages segment reported strong growth throughout the entire NESCAFÉ portfolio, with double-digit growths recorded by all important brands, including NESCAFÉ CLASSIC, NESCAFÉ Sunrise, and NESCAFÉ GOLD. Through the achievement of its largest market share to date and significant increases in household penetration, NESCAFÉ has maintained its position as the category leader. 
- Petcare Business reported that trade reviewers and cat owners remained complimentary of Felix Wet Cat Food. 
- The Board of Directors has declared a second interim dividend for 2023 that will be paid starting on November 16th, 2023, at a rate of Rs.140 per equity share (Face value Rs. 10 per equity share). This is on top of the initial interim dividend of Rs.27 per equity share, which was paid on May 8, 2023.

Commenting on the results, Mr. Suresh Narayanan, Chairman and Managing Director, Nestlé India said, “I am pleased to share that we have, yet again, delivered consistent performance almost across all major brands. 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. We crossed INR 5,000 crore turnover, which has been our first in any quarter in the history of the Company and a landmark for us."