Food & beverages major Nestle India, which makes products like Maggi Noodles, KitKat & Nescafe, posted its September quarter (Q3CY21) results on Tuesday, 19 October 2021.
Nestle India, which follows the January to December financial year, reported revenues (topline) of ₹3,865 crore, up 9.6% year-on-year. Revenue growth was driven by domestic sales, which rose 10.1%. The company’s net profit stood at ₹617 crores, up 5.1% year-on-year. Meanwhile, revenue & profits were nearly in line with the street estimates.
The company said that its food & beverage categories like coffee and power brands like KitKat, Munch & Milky Bar saw double-digit growth owing to the cooling of the intensity of the pandemic along with higher vaccination coverage.
According to the management, the OOH (Out of Home) business is on a recovery path with the gradual opening of hotels, restaurants, offices and malls. Similarly, organized trade and e-commerce also showed signs of growth.
Recently, the company introduced Maggi Noodles & Polo mints in the Middle East markets.
In the short-to-medium term, the company believes that prices of key raw materials such as wheat, coffee, edible oil, milk, etc. could remain higher.
The company also believes that if the import duty on edible oil remains scrapped until next year, it will result in food inflation being in control.
In the current financial year, the company's share price has risen by 13%. On the other hand, the Nifty50 Index has risen by almost 25%, which shows that Nestle India has underperformed as compared to the Nifty50.