Nestle India net profit dips 20 per cent to Rs 387 crore in Oct-Dec 2021 quarter

FMCG giant Nestle India Limited on Thursday reported Rs 386.6 crore net profit for the quarter ended December 31, 2021, which is 20 per cent down from Rs 483 crore recorded in the corresponding period of the previous year.

The company posted a net profit of Rs 2,145 crore for the full year 2021. Nestle India follows January-December as the financial year.

Nestle India witnessed broad-based, double-digit, volume and mix led growth, despite a highly volatile economic environment, the company said in a statement. Total sales and domestic sales for 2021 increased by 10.1 per cent and 10.7 per cent, respectively.

Commenting on the results, Suresh Narayanan, Chairman and Managing Director, Nestle India said, "2021 was a very challenging year and I am proud of the determination of the team, our partners and stakeholders to face the context and continue to be inspired to grow."

Strong growth momentum continued in MAGGI Noodles aided by increased availability. KITKAT and MUNCH registered stellar growth throughout the year. NESCAFE Classic continued to deliver double-digit growth. Growth in e-commerce was fuelled by new emerging formats such as 'Quick Commerce' and 'Click & Mortar'.

"We have progressed firmly and resolutely on our RURBAN journey and this has borne fruit with strong rural growth performance in addition to sustained growth in smaller town classes and urban agglomerates," Nestle India said in the statement.

"We continue to witness high inflation in our key raw and packaging materials, where many are at 10-year highs. However, we remain confident of our ability and competencies and will continue to make all efforts towards cost optimization and seeking systematic efficiencies to mitigate the impact," it said.

The Board of Directors has recommended a final dividend for 2021 of Rs 65.00 per equity share (Face value INR 10/- per equity share) amounting to Rs 626.7 crore. The total dividend for 2021 aggregates to Rs 200 per equity share which includes the first interim dividend of Rs 25.00 per equity share paid on 19 May 2021; and the second interim dividend of Rs 110.00 per equity share paid on 16 November 2021.

( With inputs from ANI )