Nestle logs healthy Q2 earnings on a yearly basis as sales of products continue to improve; PAT at Rs539cr

The company's total Sales and Domestic Sales for the quarter increased by 13.8% and 13.7% respectively, on a base impacted by COVID 19 induced lockdown with production disruptions across factories.

Jul 28, 2021 04:07 IST India Infoline News Service

FMCG-giant, Nestle India garnered a net profit of Rs538.58cr in the quarter ending June 2021 (Q22021) period. The company follows a calendar year for announcing its financial performance.

Nestle's Q2 PAT has risen from Rs486.6cr in the same quarter last year, however, the bottom-line front was down from Rs602.25cr in the preceding quarter.

Nestle's revenue from operations stood at Rs3,476.7cr in Q1FY22 increasing from Rs3,088.4cr of Q2-2020 but lower from Rs3,640.5cr of Q1-2021.

The company's sales of products stood at Rs3,462.4cr in the quarter under review up from Rs3,041.5cr in Q2-2020 however down from Rs3,600.2cr of Q1-2021.

The company's total Sales and Domestic Sales for the quarter increased by 13.8% and 13.7% respectively, on a base impacted by COVID 19 induced lockdown with production disruptions across factories. Domestic Sales growth was driven by volume & mix. Export Sales increased by 17.7% due to the timing of exports to affiliates.

The company's key products such as s MAGGI Noodles, KITKAT, Nestlé MUNCH, MAGGI Sauces, MAGGI MASALAAE-MAGIC posted strong double-digit growth. Also, a strong performance was witnessed in E-Commerce channels, grew by 105% and contributed 6.4% of domestic sales.

In recent times, Nestle said that commodity prices have been rising across oils and packaging materials.

Suresh Narayanan, Chairman and Managing Director, Nestlé India said, “The needs of the community and supporting our people always take precedence over everything else in a crisis. Those are the values and the purpose that has defined us, which we take pride in and cherish. At the same time, as a leading food and
beverage company, ensuring supplies of much-needed products to consumers is the call of duty that unites all of us at Nestlé India!"

Narayanan added, "Despite the enormous challenges during the devastating second wave of the pandemic in this quarter, I am immensely proud of the resolve of my team and our partners. An unwavering determination, empathetic teamwork, singular commitment and resolute focus ensured that much-needed food and beverage products were available to our consumers. A simple, yet innovative example of this was the timely implementation of a ‘telecaller model’ to take orders across trade channels. Our front-line sales colleagues stood tall to overcome serious logistical obstacles and ensure availability. Our efforts to ensure last-mile access were aided by e-commerce and in particular hyperlocal (quick commerce) channels which grew by 147% in the first half of this year."

On Sensex, Nestle finished at Rs17988 per piece down by 1.4%. 

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