FMCG major Nestle India on Thursday posted a 66% year-on-year (YoY) rise in net profit at Rs 628 crore for the fourth quarter ended December 2022. The profit stood at Rs 379 crore in the corresponding quarter last year.
The company follows a January-December financial year.
The Board has recommended a final dividend of Rs 75 per equity share for the year 2022.
The company’s sales rose 14% to Rs 4,233 crore in the December quarter, compared with Rs 3,715 crore in the same quarter of last year. Meanwhile, revenue from operations too jumped 14% YoY to Rs 4,257 crore for the reporting period.
“I am delighted to share that we delivered our highest double‐digit growth in a decade led by sustained volume and mix-led growth, leading to strong value growth. In 2022 total, sales grew by 14.5% and domestic sales increased by 14.8%, with broad-based performance across all categories,” said Suresh Narayanan, CMD, Nestle.
The company has reported an EBITDA of Rs 973 crore for the fourth quarter ended December, higher by 14%, compared with Rs 851 crore reported in the same quarter of last year. Meanwhile, margins stood at 22.9%.
With some respite in crude oil, the company said input materials such as packaging have witnessed relief and demand continues to be robust with domestic outlook of prices evolving.
“Premiumization is one of the growth engines that will lead to future acceleration of the business,” Suresh Narayanan said. Export sales for the quarter under review increased by 17%.
For the full year, the company has reported a net profit of Rs 2,390 crore, while net sales stood at Rs 16,970 crore. Domestic sales growth during the same period grew 15%.
The e-commerce channel delivered strong growth driven by new emerging formats such as quick commerce and click & mortar. Meanwhile, quick commerce growth was fueled by new user acquisition initiatives through targeted digital communication.
The out-of-home (OOH) segment made a strong comeback in 2022, the company said, adding that the channel has recovered from its pre-covid base to deliver robust growth.
The prepared dishes and cooking aids saw a strong growth momentum continued with a healthy balance of product mix, pricing and volume growth in Maggi noodles and Maggi Masala-ae-Magic aided by strong consumer engagements, market presence with media campaigns and attractive consumer activations.
Nestle said that the milk products continued to face challenges due to unprecedented milk price hikes. The confectionery segment gained market share and delivered strong growth driven by KitKat and and Munch.
Meanwhile, organized trade continued to witness strong growth across customers and categories.
On Thursday, Nestle stock was up 2.02% at Rs 19,650 apiece on NSE.