Last Updated on October 20, 2023 by BFSLTeam BFSLTeam
Table of Content
Introduction
The Indian subsidiary of Nestlé, a Swiss MNC, Nestlé India Limited was incorporated in 1959. With nearly a dozen production facilities located in various parts of the country, Nestlé India Ltd. manufactures products under famous brand names, such as Maggi, Nescafe, and Kit Kat. The company’s product portfolio comprises food, beverages, chocolates, and confectioneries.
Nestlé India Limited reported its financial performance for the third quarter of FY2023-24 on October 19th, continuing its robust growth journey. Let us take a look at its performance highlights and key metrics.
Please note that Nestlé India follows a Jan-Dec calendar.
Additional Read: Q2 Results Dashboard
Key Financial Metrics
Performance Highlights
- The company announced a 37.28% YoY increase in Profit After Tax (PAT) at ₹ 908.08 Cr for the quarter under review.
- Nestlé India Ltd.’s revenue from operations rose 9.45% YoY at ₹ 5,036.82 Cr for the quarter.
- The net profit for Q2 of FY2023-24 includes a one-time gain of ₹ 106.4 Cr.
- Total and domestic sales for Q2 of FY2023-24 grew by 9.4% and 10.3%, respectively.
- The Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) increased by 21.3% to ₹ 1,225 Cr, while the EBITDA margin decreased by 220 bps to 24.3%.
The FMCG major, on the back of stable volume growth and favourable pricing, performed strongly in the last quarter. It reported a consolidated net profit of ₹ 908.08 Cr, with a 37.28% YoY increase from ₹ 661.46 Cr the company reported during the same period last year.
Nestlé India Limited’s total revenue for the quarter under review stood at ₹ 5,036.82 Cr, showcasing a 9.45% rise from ₹ 4,601.84 Cr during the same period the previous year. This was also the first time the company crossed the ₹ 5,000 Cr mark in turnover in any quarter in its history.
Nestlé India also did well domestically and reported a 10.3% growth in domestic sales, which was attributed to mix, volume, and pricing. The impressive growth was also ascribed to its e-commerce channel, which contributed to 6.1% of the quarterly sales.
Coming to the Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA), the company reported a growth of 21.3% YoY to ₹ 1,225 Cr from ₹ 1,009.6 Cr. However, the EBITDA margin reduced by 220 bps to 24.3% from 22.1% YoY.
Management Commentary
The company made a few announcements pertaining to the dividends and stock split. Meanwhile, Mr. Suresh Narayanan, the Chairman and Managing Director at Nestlé India, spoke about rolling out the D2C platform across several cities.
Major Announcements
- Based on the company’s D2C platform’s (www.mynestle.in) performance in Delhi NCR, the company is in the process of expanding it to other cities.
- Nestlé India’s Board of Directors announced a second interim dividend of ₹ 140 per equity share of ₹ 10 each for 2023.
- The company’s board also approved a stock split in the ratio of 1:10.
Nestlé India Limited: QoQ Financial Figures
| Particulars | Q2 FY 2023-24 | Q3 FY 2023-24 |
| Total income | ₹ 4,682.5 Cr | ₹ 5,070.09 Cr |
| Revenue from operations | ₹ 4,658.53 Cr | ₹ 5,036.82 Cr |
| Total expenses | ₹ 3,743.15 Cr | ₹ 3,954.49 Cr |
| Profit before tax | ₹ 939.3 Cr | ₹ 1,222.02 Cr |
| Profit after tax | ₹ 698.34 Cr | ₹ 908.08 Cr |
| Total comprehensive income | ₹ 695.58 Cr | ₹ 905.42 Cr |
Stock Performance
Buoyed by the company’s financial performance, Nestlé India’s shares, which opened at ₹ 23,279.90 on October 19th, were trading 3.98% higher at ₹ 24,196 apiece on the BSE at 2:52 PM.
Additional Read: Nestle India Share Price
About the Company
Nestlé India is the subsidiary of Nestlé S.A., the world’s largest food and beverage company. The company has catered to Indian consumers’ needs for nearly a century, and Nestlé India today has eight manufacturing facilities and four branch offices across the country. Nestlé India is widely regarded as one of the most respected companies and one of the top wealth creators in the country.
Sources:
https://www.bseindia.com/xml-data/corpfiling/AttachLive/1dc0c87d-7bc2-4877-87e1-0dc2dac369e6.pdf
https://www.bseindia.com/xml-data/corpfiling/AttachLive/faaa6925-6c06-465b-ae0a-c18644550288.pdf
