KitKat chocolates and Maggi noodles company, Nestle India, reported a net profit of Rs 736 crore for the March quarter, making a 24.7% jump over the year-ago period.
This is a big beat on estimations that had fastened the Nestle net profit at Rs 674 crore. The company follows a calendar year, i.e., January to December, as a financial year.
Revenue from operations jumped 21.3% YoY to Rs 4,830 crore. EBITDA came in at Rs 1,098 crore on the operating front, up 18%.
Margins at 22.7% were lower than 23.4% in the year-ago period. Estimates had pegged margins at 23%. The company anticipates the cost of fresh milk, fuels, and green coffee to remain stable amid a constant rise in demand and volatility.
After the results, the stock took a sharp knock falling over 1.5% at 11 am. But it improved to trade flat by 11:15 am.
NESCAFE verified the highest-ever market share in the quarter. The company’s exports rose 25% YoY to Rs 195.6 crore in the quarter. As per analyst calculations, the company’s volume growth was 5% YoY, while the Street expected only 3% amid the impact on Maggi Chotu packs.
Confectionery led by KITKAT and MUNCH displayed robust growth, supported by consumer drives, innovation, and engagement.
For 2023, the company’s board declared an interim dividend of Rs 27 per equity share amounting to Rs 260 crore from May 8, 2023, and the final dividend for 2022 of Rs 75 per share.