Markets

Nestle Q3 results: Profit falls 1.4%; revenue rises 10.1% on double-digit growth in key brands

New Delhi: The country’s biggest packaged foods company Nestle India reported 1.4% year-on-year decline in profit for the quarter ended September 30, hit by higher tax costs, but said revenues and operating income grew in double digits.

The maker of Maggi noodles and KitKat chocolate announced return to double digit growth for the quarter under consideration and committed fresh investments of Rs 2,600 crore over the next three to four years, it said in a BSE filing.

Profit for the quarter declined to Rs 587 crore, from Rs 595.3 crore in the year-ago period. Nestle reported total sales of Rs 3,525 crore, a growth of 10.2%, driven by volume and mix. It said domestic sales too grew 10.2%.

Suresh Narayanan, Nestle managing directorsaid in a statement: “The quarter witnessed growth driven by an improved supply situation, as our factories returned to normal output.”

The India unit of the Swiss foods company said factories returned to normal output in the quarter and reported double digit growth for key brands including Maggi noodles, KitKat and Munch chocolates and Nescafe which it attributed to surge in in-home consumption. “Demand in ‘out of home’ channels improved during the quarter, and e-commerce grew by 97%, contributing about 4% of domestic sales, Nestle said in a statement.

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Markets-Economic Times

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