Nestle India announced a net profit of ₹655.61 crore for the quarter ending December 2023, reflecting a 4.4% growth compared to ₹628.06 crore in the same quarter last year.
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Shift in Fiscal Year and Strong Revenue Growth
The company disclosed a change in its fiscal year, starting from April 1 to March 31, subject to approvals. Despite this adjustment, Q4CY24 revenue surged by 8% to ₹4,600.42 crore, with a notable 8.9% increase in domestic sales fueled by e-commerce and out-of-home channels.
Nestle India’s Decline in Net Profit and Revenue
On a sequential basis, Q4 results witnessed a 27.8% decline in net profit from ₹908.08 crore in Q3CY24, and revenue from operations dropped 8.7% from ₹5036.82 crore.
Milestone Achievement and One-Time Loss Explanation
Nestle India crossed the ₹19,000 crore sales mark in 2023, attributing the success to major brands and product groups. The company reported a total sales growth of over 13.3% but incurred a one-time loss of ₹107.3 crore due to changes in pension benefit costs.
Beverages Drive Growth, Out-of-Home Business Expands
The Beverages category, led by NESCAFÉ CLASSIC and NESCAFÉ SUNRISE, fueled growth. The out-of-home business expanded rapidly, contributing 7% to domestic sales, with a significant boost from e-commerce.
Interim Dividend and Record Date Announcement
Nestle India’s board approved a third interim dividend of ₹7 per equity share for FY 2023-24, with the record date set as February 15. The dividend will be paid from March 5, 2024, to eligible members.
NBS Division Slump Sale to Purina PetCare India
The board also sanctioned the slump sale of the Nestle Business Services (NBS) Division to Purina PetCare India, a Nestlé S.A. subsidiary, for ₹79.8 crore. The transaction will be effective from July 1, 2024, subject to customary closing conditions.
With input from Mint
