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Maggi maker Nestlé India net profit grows 8.3% to ₹668 crore in Q2

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  • Nestle India says the second quarter saw the highest quarterly revenue growth in the past five years.
  • Growth for the quarter was driven by strong sales in Maggi noodles, Milkmaid, Nescafe Classic and Sunrise.
  • It sees early signs of stability in the prices of edible oils and packaging materials.
  • Nestle adds, however, that costs for fresh milk, fuels, grains and green coffee are expected to remain stable.

FMCG giant Nestlé India reported 8.3% growth in net profit in the second quarter to 668 crore compared to ₹617 crore in the same quarter last year. Operating income increased 18% to 4,591 crore from ₹3,882 crore in Q2FY22.

On a sequential basis, profits grew 29.7%, while revenues grew 13.7%.

“I am pleased to report that we have seen the highest quarterly revenue growth in the past five years. This performance was driven by continued strong volume and mix evolution with broad double-digit growth across all categories. Growth was very strong in major metropolitan cities and megacities and remained robust in smaller city classes, including rural markets,” said Suresh Narayanan, Chairman and MD, Nestlé India.

The company announced its second interim dividend of 120 per share, in the amount of ₹1,157 crore, to be paid on and from November 16, 2022.

Particularities Q2 FY23 Q1 FY23 Q2 FY22
Revenue from operations ₹4,591 crore ₹4,036 crore ₹3,882 crores
Gain ₹668 crore ₹515 crore ₹617 crore

The FMCG player was able to post healthy profits this quarter as oil and fuel commodity prices fell after peaking after the war in Ukraine. “We are witnessing early signs of stability in the prices of some commodities, such as edible oils and packaging materials. However, costs for fresh milk, fuels, grains and green coffee are expected to remain stable with continued increases in demand and volatility,” the company said in an exchange statement.

After the better-than-expected results, the company’s shares rose 1.22% to ₹19,624 by mid-afternoon.

The company said growth during the quarter was driven by strong sales in Maggi noodles, Milkmaid, Nescafe Classic, Sunrise and packaged mixes for vending machines.

Meanwhile, shares of other FMCG players also rose after strong results pointing to a rebound in demand across all segments.

FMCG players % Modify
Nestle India 2.18%
ITC 1.76%
Emami 0.69%
Varun drinks 0.57%
Marico 0.27%

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