The renowned FMCG player and maker of Maggie Noodles, Nestle India has reported a standalone net profit of INR 934 Cr for Q4FY24. This marks a substantial growth of 27% from the previous year’s figure of INR 737 Cr.
Revenue Growth
The company’s revenue rose 9.1% to INR 5,268 Cr in the January-March quarter, compared to INR 4,830.5 Cr in the same period last year. This revenue growth not only surpassed analysts’ estimates of INR 858 Cr but also exceeded the estimated 6.6% growth, reflecting Nestlé India’s flexibility in handling market fluctuations.
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Chairman’s Statement
Expressing his satisfaction with the company’s performance, Suresh Narayanan, Chairman and Managing Director of Nestlé India, stated, “I am pleased to share that despite the challenges posed by rising food inflation and volatile commodity prices, we have achieved double-digit growth “We have seen a strong growth.” The combination of pricing and mix led to momentum in our product portfolio. Our domestic sales crossed INR 5,000 Cr this quarter, which is a remarkable milestone for us. I would like to express my heartfelt gratitude to our associates, distributors, retailers and partners for their unwavering dedication, determination and hard work.”
Commodity Price Pressures
Despite its positive impacts, Nestle India India acknowledged that they may face rising commodity prices, particularly in coffee, cocoa, grains and cereals, and milk. The shortage in the coffee and cocoa markets is alarmingly significant, pushing prices to all-time highs. The company supports these statements with evidence, as shown in the image below. Moreover, estimated inventory surplus in cereals and grains, partly due to MSP policy support, and revision in production conditions of vegetables and fruits in extremely hot summer states, continue to hamper the market.
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Dividend Announcement
Nestle India’s board has proposed and recommended a final dividend of INR 8.5 for the share with a face value of INR 1 of the company for the financial year 2023-2024, the 15 months covering March 31, 2024.
