Nestlé Q2 net profit up by 20.48%

Nestlé India Ltd has posted a net profit of Rs 447 million for the quarter ended June 30, 2001 for the quarter ended June 30, 2001 as against Rs 371 million in the corresponding period last fiscal. Net Sales rose by 11.55%, from Rs 4198 million in the quarter ended June 30, 2000 to Rs 4683 million in the quarter ended June 30, 2001. While Domestic Sales grew at 11.9%, export sales for the quarter increased by 9.5%, mainly on account of exports to Russia.

Other Income for the quarter ended June 30, 2001 is at Rs 36 million as against Rs 19 million in the quarter ended June 30, 2000.

Interest Cost has declined from Rs 40 million in JQ 2000 to Rs 23 million in JQ 2001.

The continuing lack of buoyancy in the economy has been a concern during the past months but did not affect the Company in any significant manner. During the quarter, the Company has maintained its thrust on improving availability of its products and of promoting packs and flavours in line with customer needs. The various brands of the Company have performed well and new products launched in the recent past reported trials and acceptance.

The company management has expressed satisfaction with the performance during the quarter. Commenting on the performance Mr. Carlo Donati, Chairman & Managing Director Said "The excellent top-line growth and the contribution to bottom-line is the result of the increasing pace of innovation and renovation within the company. The focus on continuous improvement as a process in all areas is evident in the results for this quarter and cumulative results for the first half. Though our entry into new businesses and continuing lack-lustre markets may impact results in the near future, I am confident that the Company is moving in the right direction."