Maggi maker Nestle India records a 20% yoy decline in Q4CY21 to Rs386.6 crore, revenue jumps 8.9% yoy on higher volume and mix led growth

17 Feb 2022 , 12:51 PM

The Maggi manufacturer, Nestle India missed street’s estimates in the quarter ending December 2021. The company follows a calendar year for announcing the financial performance. Nestle posted a net profit of Rs386.6 crore in the quarter under review down by 20% yoy, while revenue jumped 8.9% yoy to Rs3,739.3cr in Q4 of 2021.

Total Sales and Domestic Sales for the quarter increased by 8.4% and 9.2% respectively. Domestic Sales growth is broad-based and largely driven by volume & mix. Export Sales were lower by 6.6% largely due to changes in product mix.

Suresh Narayanan, Chairman and Managing Director, Nestlé India outlined that the company witnessed broad-based, double-digit, volume and mix led growth, despite a highly volatile economic environment. Total sales and domestic sales for 2021 increased by 10.1% and 10.7% respectively. Strong growth momentum continued in MAGGI Noodles aided by increased availability. KITKAT and MUNCH registered stellar growth throughout the year. NESCAFÉ Classic continued to deliver double-digit growth. Growth in e-commerce was fuelled by new emerging formats such as ‘Quick Commerce’ and ‘Click & Mortar’. Also, the company has 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.

For the year, Domestic Sales growth is largely driven by volume & mix and is broad-based. Export Sales were lower by 1.2% mainly due to lower coffee exports and changes in product mix.

Narayanan said, “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.”

Further, Narayanan said that “Leveraging granular growth opportunities using the power of data and analytics is a core ambition of our business strategy. We have harnessed this by building a multi-intelligent data analytics system that sources internal and external data to converge on insights that triggers swift and decisive business actions.”

At around 12.46  PM, Nestle was performing at Rs18221.50 per piece down by Rs22.85 or 0.13% on BSE. The stock has touched an intraday high and low of Rs18572.95 per piece and Rs17969.30 per piece respectively.