Q4CY23 Quarterly Result Announced for Nestle India Ltd.
Packaged Foods company Nestle India announced Q4CY23 results: Financial Highlights – Q4CY23: Total Sales amounted to Rs 4,583.6 crore. Total Sales Growth reached 8.3%, with Domestic Sales Growth at 8.9%. Profit from Operations stood at 21.9% of Sales. Net Profit recorded at Rs 655.6 crore. Earnings Per Share amounted to Rs 6.80. The Board of Directors have declared third interim dividend for FY24 of Rs 7/- per equity share (face value of Re 1/- each) amounting to Rs 674.91 crore, which will be paid on and from 5th March 2024. On and from the Record Date of 5th January 2024, the equity shares of the Company were sub-divided, such that 1 (one) equity share having face value of Rs 10/- (Rupees ten only) each, fully paid-up, stands sub-divided into 10 (ten) equity shares having face value of Re 1/- (Rupee one only) each, fully paid-up Business Comments – Q4CY23: E-commerce: Continued growth momentum with targeted demand generation initiatives across key platforms based on portfolio relevance and shopper needs. Organized Trade: Delivered robust growth, spurred by festive walk-ins. The channel continued to play a pivotal role in premiumization and new product launches. Out of Home (OOH): Reported strong growth, fueled by portfolio transformation and premiumization, channel prioritization, digital lead generation, and new customer acquisition. Exports: Expanded product offerings across key international markets to delight Indian diaspora exploring multiple markets. Product Groups Performance – Q4CY23 (Domestic): Prepared Dishes and Cooking Aids: Continued growth momentum observed across the portfolio, fueled by effective communications, media investment, shopper engagement, and innovations targeting market development, particularly in RURBAN markets. Milk Products and Nutrition: Expansion of NESTLÉ A+ Masala Millet to Mumbai and MILO for Teenager to key south markets. Positive consumer response received for MILKMAID and PEPTAMEN. Confectionery: Strong growth in confectionery led by KITKAT and MUNCH, supported by consumer-led campaigns and new product launches including MILKYBAR caramel, MUNCH fruity, and POLO watermelon. KITKAT entered the premium segment with three new variants. Beverages: Robust growth across the NESCAFÉ portfolio, with double-digit growth for NESCAFÉ CLASSIC and NESCAFÉ Sunrise. NESCAFÉ strengthened its leadership position with market share gains and increased household penetration. Petcare Business: Felix Wet Cat Food received positive feedback from trade and cat parents, with e-commerce playing a pivotal role in distribution. Commenting on the results, Suresh Narayanan, Chairman and Managing Director of Nestlé India, stated, “I am pleased to share that despite external challenges, we have once again delivered a strong performance this quarter. Domestic sales grew by 8.9%, driven by pricing and mix growth, with strong momentum in e-commerce and out-of-home channels. Throughout the year 2023, our total sales grew by over 13.3%, crossing the Rs 19,000 crore mark. All key brands and product groups have contributed to Nestlé India’s consistent growth trajectory. This quarter, strong demand for NESCAFÉ CLASSIC and NESCAFÉ SUNRISE fueled double-digit growth in the Beverages product group, with NESCAFÉ gaining significant market share. The Milk and Nutrition product group posted double-digit growth, while Prepared Dishes and Cooking Aids maintained commendable growth. Confectionery, another strong growth driver, also delivered solid performance. This overall growth underscores the trust consumers place in us and the unwavering commitment of our teams. Our Out-of-Home business accelerated rapidly this quarter, focusing on relevant innovations, new geographies, and robust penetration in emerging channels with the opening of new kiosks in key locations. This strategic clarity and disciplined execution made our Out-of-Home business the fastest-growing segment in India. E-commerce recorded strong growth, contributing 7% of domestic sales in this quarter. Organized trade also witnessed robust growth, supported by festive walk-ins and new product launches. Our teams excelled in implementing shopper-centric activities across our extensive portfolio, spanning both traditional platforms and the rapidly growing ‘quick commerce’ sector.” Result PDF07-02-2024