26th April 2022: Nestlé India has posted double-digit domestic sales thanks to the success of its major brands Maggi Noodles, KitKat, Nestlé Munch, Nescafé Classic, and Sunrise.
“As previously stated, the cost of major raw and packaging materials is at 10-year highs, and costs continued to rise this quarter, affecting earnings from operations.” In the short to medium term, continued inflation is going to be a critical driver,” Suresh Narayanan, Chairman and Managing Director of Nestlé India, said in a statement during an earnings call with investors.
The company’s revenue increase was in line with the 9% growth recorded over the previous three quarters, as well as street expectations.
Narayanan attributed the company’s rise to a combination of creative advertising, appealing consumer promos, analytics-based consumer insights, geo-targeted distribution efforts, and capitalising on the festive season’s opportunity.
E-commerce has grown by 70% in the last year, accounting for 6.3 percent of the company’s domestic sales. Narayanan, who was the highest-paid FMCG CEO in 2020, saw his pay package increase by 9% in 2021.
According to the company’s annual report, his compensation package increased to Rs 18.8 crore in 2021 from Rs 17.19 crore in 2020.
Mr. Narayanan stated, “We will continue to exploit e-commerce through relevant shopper insights, data analytics, speed, crisp communication, and customization.”
“Our main brands continue to perform strongly, with creditable double-digit growth in this quarter for Maggi Noodles, KitKat, Nestlé Munch, Nescafé Classic, and Sunrise.”
In March 2022, EBITDA was Rs. 946.09 crores, down 1.4 percent from Rs. 959.52 crore in the same month the previous year. Furthermore, Nestle‘s Earnings Per Share (EPS) fell to Rs. 61.68 in the current quarter from Rs. 62.46 in March 2021.
Nestle India Ltd’s shares fell 0.19 percent on Friday after the earnings were announced, closing at Rs 18,172.05 a share on the BSE.
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