The Board of Directors of Nestlé India today approved the results for the second quarter of 2023.
Commenting on the results, Mr. Suresh Narayanan, Chairman and Managing Director, Nestlé India said, “I am pleased to share that we have, yet again, delivered robust performance, with all product groups registering double digit growth. This is the fifth quarter in a row of double-digit growth across ALL product groups. Domestic sales growth is broad based and grew by 14.6%, on the back of prudent pricing and supported by mix and volume with targeted brand support. Key brands continued to perform well, led by KITKAT, NESCAFÉ and MAGGI among others.
The Out-of-Home business continued to deliver strong growth this quarter, through a pivot of dual strategies in terms of portfolio transformation and robust precise execution of differentiated channel and geography plans to harness big growth opportunities.
Our RURBAN strategy was helped by increasing distribution footprint with relevant portfolio, thereby achieving higher penetration. We witnessed strong growth across Mega cities and Metros, robust performance in Tier 1 to 6 towns and continued strength in rural markets. E- Commerce continued to perform strongly and now accounts for almost 6.5% of sales.
We have renewed and indeed accelerated our focus on brand building and continued to make relevant investments during this quarter. The focus on Innovation and Renovation remained, and as examples we launched three notable new products in the Indian market – Resource Fiber Choice, a unique and effective gut health solution that is proven to help relieve constipation and improve gut health, Everyday Zero – the dairy whitener with no added sugar and MUNCH Breakfast Cereals.
“Make in India” has always remained the cornerstone of our industrial footprint strategy and I am pleased to announce that Odisha has been identified as the state that will be home to Nestlé India’s TENTH factory. We have now received an "in principle" approval from Industrial Promotion & Investment Corporation of Odisha Limited (IPICOL). Our dream and ambition is to also make the Odisha factory “State of art” in line with our continuing commitment to gender diversity, sustainable manufacturing, paperless digitally managed facility with an abiding focus on the environment in terms of practices. Like all our other factories, Odisha factory too will remain committed to serve the local communities through relevant societal initiatives.
Dignity, respect, and equal opportunity are enshrined in the pillars of ‘Purpose and Values’ of Nestlé India. It gives me immense pride to announce that we have recruited 12 persons with disabilities to work on our production line at our Sanand factory. We remain committed to the path of diversity and inclusion in various parts of our business with the necessary commitment and resources to propel such initiatives
I would like to thank our diverse team who make ‘Performance with Pride’ happen at Nestlé India with diligence, commitment, ethics, teamwork, compassion and humility ---our employees, partners, suppliers, distributors, retailers for their unwavering faith and wholehearted support in our company’s journey in the past decades.”
Financial Highlights – Q2 2023:
- Total Sales of INR 4619.5 Crore
- Total Sales Growth at 15.0 %. Domestic Sales Growth at 14.6%.
- Profit from Operations at 20.7% of Sales
- Net Profit of INR 698.3 Crore
- Earnings Per Share of INR 72.43
Business Comments – Q2 2023:
- E-commerce: The channel contributed to 6.5% of the quarterly sales and continued the growth momentum driven by Quick Commerce
- Organized Trade: The channel continued delivering strong broad-based growth across categories driven by store expansion and improved footfalls
- Out of Home (OOH): Continued to deliver robust growth through premiumisation and portfolio transformation initiatives. Strong performance is an outcome of kiosk expansion and prioritization of emerging channels
- Exports: Registered robust double-digit growth across all categories through proliferation of products such as NESCAFÉ Sunrise and Polo
Product Groups Performance – Q2 2023 (Domestic):
- Prepared Dishes and Cooking Aids: Registered double-digit growth driven by MAGGI Noodles and aided through distribution expansion and impactful consumer activations.
- Milk Products and Nutrition: Delivered strong double-digit growth despite inflationary pressures. Growth driven by Milkmaid and Peptamen. The growth was further aided by the launch of Resource Fibre choice and Everyday Zero added sugar.
- Confectionery: Registered double-digit growth led by KITKAT and MUNCH. Performance was supported by strong consumer engagement and media campaigns.
- Beverages: The product group registered robust double-digit growth led by greater household penetration NESCAFÉ Classic, NESCAFÉ Sunrise and NESCAFÉ GOLD for both hot and cold coffee occasions. NESCAFÉ continued the journey of innovation, with the launch of cold coffee premix NESCAFÉ ALL IN 1 FRAPPE.
- Petcare Business: Continues to provide complete nutrition for cats and dogs. Felix has received positive feedback from trade and cat parents.
Commodity Outlook:
Commodities such as edible oils, wheat and packaging materials have been in the lower price range. A reversal of price trend is noted in fuels with prices softening in second quarter after reaching higher level towards the end of quarter one. In fresh milk, there has been price stability. Robusta prices are elevated and are expected to remain volatile.
Cautionary Statement:
Statements in this Press Release, particularly those which relate to outlook, describing the company’s projections, estimates and expectations may constitute ‘forward looking statements’ within the meaning of applicable laws and regulations. Actual results might differ materially from those either expressed or implied in the statement depending on the circumstances.
For more information
Ambereen Ali Shah, [email protected], +91 9717022731
Amit Kumar Roy, [email protected], +91 8447737626
Nestlé India Limited, Head Office: Nestlé House, Jacaranda Marg, M Block, DLF City Phase – II, Gurugram 122 002 (Haryana)
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Corporate Identity Number: L15202DL1959PLC003786
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Website: www.nestle.in