FMCG major Nestle India Ltd on Thursday reported a 65.50 per cent increase in net profit at Rs 628.06 crore for the fourth quarter ended December 31, 2022.
The company, which follows the January-December financial year, had posted a net profit of Rs 379.48 crore in the same period a year ago, Nestle India said in a regulatory filing.
Nestle India's net sales rose 13.95 per cent to Rs 4,233.27 crore during the period under review, as against Rs 3,714.86 crore in the corresponding period last fiscal, the company said.
Its total expenses in the October-December quarter were at Rs 3,427.27 crore, up 12.78 per cent, as against Rs 3,038.84 crore in the corresponding period.
The total income of Nestle India was Rs 4,286.34 crore in the October-December quarter.
Nestle India's domestic sales were up 13.82 per cent to Rs 4,061.85 crore, as against Rs 3,568.44 crore in the October-December quarter of 2021.
"Domestic Sales growth is broad-based," said Nestle India in its earning statement.
Its exports were up 17.07 per cent to Rs 171.42 crore, as against Rs 146.42 crore in the corresponding quarter a year ago.
For the year ended December 31, 2022, Nestle India's net profit was up 12.84 per cent at 2,390.52 crore. It was 2,118.41 crore a year ago.
Similarly, Nestle India's sales were 14.48 per cent higher to Rs 16,789.53 crore in 2022.
"Total Sales and Domestic Sales for the year increased by 14.5 per cent and 14.8 per cent respectively. Domestic Sales growth is broad-based with a healthy balance between pricing and volume," Nestle India said, adding "Our robust performance on e-commerce continued, fuelled by Quick Commerce and Click & Mortar."
Its exports increased by 8.2 per cent as the company expanded its presence in new markets through both traditional and mainstream channels.
"We delivered our highest double-digit growth in a decade led by sustained volume and mix (price) led growth, leading to a strong value growth," Nestlé India Chairman and Managing Director Suresh Narayanan said.
The company has strengthened its approach by increasing distribution points and going deeper into smaller towns and cities.
According to Nestle India, the cost of materials consumed as a percentage to sales has increased due to "higher commodity prices, particularly edible oil, milk and its derivatives" and packaging materials, partly offset by better realisations.
While sharing a short-to-medium-term commodity outlook, Narayanan said key categories such as cereals, grains and coffee continued to be at a 10-year high.
"Edible oil too was at a 10-year high and moderated towards the last quarter. Fresh milk prices continue to remain firm due to Lumpy Skin Disease in H2’22 and rise in feed costs to farmers," he said.
With some respite in crude oil, input materials such as packaging have witnessed relief.
"Demand continues to be robust with the domestic outlook of prices evolving because of supply and weather conditions," Narayanan added.
Meanwhile, in a separate filing, Nestle India said its board in a meeting held on Thursday recommended a final dividend for the year 2022 of Rs 75 per equity share of Rs 10 each.
The board has also appointed Svetlana Boldina, as an Additional Director and Whole-time Director, designated as 'Executive Director - Finance & Control and Chief Financial Officer of the company from March 1, 2023, for a term of five consecutive years in place of David McDaniel.
Shares of Nestle India were closed at Rs 19,562.05 apiece on BSE, up 1.64 per cent from its previous close.