Nestle reports 20 per cent slump in profit
FMCG major Nestle India Ltd on Thursday reported a 20 per cent decline in its net profit at Rs 386.66 crore for the fourth quarter ended December 31, 2021 as dearer raw material inputs weighed on earnings.
The company, which follows a January-December financial year, had posted a profit of Rs 483.31 crore in the same period a year ago, Nestle India said in a regulatory filing.
However, revenue from operations rose 8.93 per cent to Rs 3,739.32 crore during the period under review from Rs 3,432.58 crore in the corresponding period last fiscal.
Nestle India’s total expenses in the October-December quarter increased 8.23 per cent to Rs 3,022.97 crore from Rs 2,793.01 crore of the corresponding period.
Nestle India’s domestic sales were up 9.17 per cent at Rs 3,559.78 crore against Rs 3,260.70 crore in the October-December period of 2020.
Exports were down 6.63 per cent at Rs 146.42 crore against Rs 156.82 crore of the corresponding quarter.
“Domestic sales growth is largely driven by volume,” said Nestle in an earnings statement adding exports were lower mainly due to lower coffee exports and a change in product mix.
For the year 2021, Nestle India’s net profit was up 3 per cent at Rs 2,144.86 crore against Rs 2,082.43 crore a year ago.
Revenue from operations increased to Rs 14,709.41 crore in 2021, from Rs 13,350.03 crore in 2020.