Nestle Q2 net profit up 9.6 per cent to Rs 263.43 crore
New Delhi: FMCG major Nestle India on July 26 reported an increase of 9.66 per cent in net profit to Rs 263.43 crore for the second quarter ended June 30, 2017 led by volume increase and rebuild of Maggi noodles.
The company, which follows January-December period as financial year, had posted a net profit of Rs 240.22 crore for the April-June quarter of previous fiscal. Its net sales during the quarter under review were up 7.29 per cent to Rs 2,469.06 crore as against Rs 2,301.11 crore for the corresponding period a year ago, Nestle said in a BSE filing.
Commenting on the results, Nestle Chairman and Managing Director Suresh Narayanan said: "An energised Maggi Noodles business, encouraging responses to our new product innovation and renovation and growth across most categories, defined our performance."
During the quarter, domestic sales moved up 8.81 per cent to Rs 2,321.12 crore as against Rs 2,133.04 crore in the corresponding period a year earlier.
"Domestic sales increased mainly due to increase in volumes supported by new product launches and rebuild of Maggi noodles, supplemented by better realisations," Nestle said.
However, it also added that growth was negatively impacted by softer trading in June ahead of GST rollout. Its exports were down 11.97 per cent to Rs 147.94 crore for the quarter under review as against Rs 168.07 crore of the corresponding period of previous fiscal.
"Export sales dropped mainly due to lower sales of milk and nutrition products to Bangladesh and Middle East," it added.
Nestle India's total expenses were up 9.38 per cent to Rs 2,103.54 crore as against Rs 1,922.98 crore. For the first half of 2017, Nestle's net profit stood 8.08 per cent up to Rs 570.19 crore as against Rs 527.54 crore of the corresponding period.
Nestle's net sales during January-June period were at Rs 5,044.80 crore, up 8.21 per cent, as against Rs 4,661.91 crore.
Meanwhile, in a separate filing, Nestle informed that its board in a meeting held on July 26 declared second interim of Rs 15 per equity share having a face value of Rs 10 per equity share for 2017.
Shares of Nestle India ended 0.43 per cent down at Rs 6,787.30 on BSE.